Rare significant increase in milk price Arla

The Scandinavian dairy cooperative increases the milk price by no less than €3,26. This brings the basic milk price for more than 80 members in the Netherlands to €41,53 per 100 kilos of milk. This price is calculated on the basis of an annual supply of 1 million kilos, with standard fat and protein contents. Including the maximum premiums that can be achieved, the milk price can rise to €44,15 per 100 kilos. The pasture milk price amounts to €42,03.

Favorable dairy market 
The increase is of course due to the favorable conditions on the European dairy market. The price of butter in particular has recently risen sharply, Arla explains in an explanation. Previously, cheese prices have risen rapidly, while the milk powder market is also rapidly gaining ground. This development gives a boost to the valorization of raw milk and dairy farmers benefit from it. At the same time, they are also confronted with rapidly rising concentrate costs, which can be seen as a downside of the rally underway on the commodity markets. 

Tone is set 
Arla is the first processor in Northwest Europe to announce the milk price for the coming month and is therefore a trendsetter. The tone has been set with the record increase for December. Since September, Arla has been at the bottom of the rankings milk price comparator from Boerenbusiness. The December milk price is now above the levels paid by other processors in November. This, in combination with the recently increased dairy prices, raises the expectation that other processors will also come up with new price increases.