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Arla raises milk price sharply for June by €5,35
Arla Foods increases the milk price for the month of June by a total of €5,35 per 100 kilos. For Arla, it is the largest increase ever in a month. The organic milk price is also going up, but in the Netherlands slightly less than the usual price.
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The increase was partly prompted by concerns about a lower than expected spring supply and its further consequences, according to Thomas Carstensen, head of commodities at Arla. This comes on top of an already somewhat tense market, the company said. Arla spokesperson Theis Brögger states that the price increase is still necessary to compensate for the increased cost level for dairy farmers.
Close to the sixty euro limit
The result of the increase is that the basic milk price according to Boerenbusiness Dutch Milk price calculator increases to €55,82 per 100 kilos. The meadow milk price will increase to €56,32, while a maximum of €58,97 can be received. Just €1,00 away from the magical €60,00 limit. The prices stated apply to an annual supply of 1 million kilos and after deduction of costs for ZuivelNL, excluding VAT.
The organic milk price will now increase by €4,18 per 100 kilos to €67,60 per 100 kilos. Also a record. With the latest increases, Arla is taking the lead in what is likely to be a series of increases at other dairy companies. Arla is the first of the major Northwest European processors to publish a new monthly milk price. In the United Kingdom, Müller has also announced an increase for June, but this company follows Arla by several euros.