News Milk price
Arla also gives a big boost to milk price
Arla also increases the milk price for May, with a historically large increase. Just like at FrieslandCampina, the bare milk price goes through the limit of €50 per 100 kilos.
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The Scandinavian dairy cooperative raises the milk price at Dutch dairy farmers by €4,30 to €50,55 per 100 kilos. This is calculated based on the standard Dutch fat and protein contents and an annual supply of 1 million. In the milk price comparator van Boerenbusiness Arla is still under the FrieslandCampina dairy cooperative, but the difference in May has become smaller.
Including bonuses and premiums, the payout price increases to a maximum of €53,70 per 100 kilos. Although Arla is not one of the frontrunners in the milk price comparator, the company has conformed to a standard dividend of €1,50.
'Welcome raise for members'
At Arla they talk about a significant increase in the milk price that is welcome by the members of the cooperative to compensate for the rising costs for feed, fertilizer and energy. This increase creates more room to make short-term investments and to absorb operational costs in the expensive spring months.
The milk price increase is the result of the rapidly rising dairy prices, whereby butter, cheese and milk powder have risen to record levels. In the meantime, the market has slowed down somewhat, but there is certainly room for higher milk prices. After all, the raw material value of milk has risen to over €60 per kilo on the basis of the valorisation of butter and skimmed milk powder.