News Milk
Arla mild with lower milk price for January
After FrieslandCampina, Arla has also lowered the milk price for January. The Scandinavian dairy cooperative cuts much less deeply than their Dutch counterpart has done.
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Arla reduces the milk price by just one euro, bringing the basic payment price for Dutch members to €61,01 per 100 kilos. This has been calculated based on an annual supply of 1 million kilos and the standard fat and protein contents. Including bonuses and premiums, the milk price can rise to just €65 per 100 kilos. The organic milk price decreases in the same order of magnitude as the current payment price.
In light of the negative dairy market, the downward movement is surprisingly mild. Earlier this week, FrieslandCampina lowered its milk price by €2,82. As a result, Arla is now above the Dutch dairy giant in the rankings milk price comparator.
Negative market
However, in an explanation of the change, Arla is anything but positive about market expectations. Between the lines it can be read that further reductions in the milk price are lurking in 2023. For example, the prices of various dairy commodities, such as foil cheese, have been severely marked down. Milk production is growing in Europe and the United States, which is putting pressure on the market. At the same time, Arla says it will continue to strive for a good payment price in response to the sharply increased costs on the farm.