Following on from FrieslandCampina, Arla's milk price for July is also increasing. However, the Scandinavian dairy cooperative is less eager to increase than the Dutch dairy cooperative.
Arla will increase by €2,30 for July, bringing the milk price to €58,12 per 100 kilos. This is calculated on the basis of the standard fat and protein contents in the Netherlands and an annual supply of 1 million kilos. The meadow milk price also remains below €60. This is because the Scandinavian dairy cooperative applies a relatively modest grazing premium of €0,50.
Including the maximum achievable bonuses and premiums, the milk price at Arla can rise to €61,27 per 100 kilos. Although Arla in the Manyprice comparator does not belong to the group of frontrunners, the company has conformed to a standard dividend of €1,50. With the latter in mind, Arla is again above FrieslandCampina - where it remains to be seen how high the supplementary payment for 2022 will be. In July, the Dutch dairy cooperative will publish semi-annual figures, which will give an indication of where things are going this year.
Market flattens out
In an explanation of the milk price, Arthur Fearnall, cooperative chairman at Arla, says that the increases in recent months were desperately needed to absorb the rising (feed) costs. He also points to a flattening dairy market. He indirectly indicates that the milk price will probably also follow that trend. In terms of milk production, Arla still sees a decline in the countries where the company is active.