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Arla keeps milk price stable for sixth time in a row
Arla is once again keeping the milk price the same for May. The company is thus maintaining the payout at the same level for the sixth month in a row. According to the company, this is because the global dairy market is also largely stable, but with a risk of additional volatility.
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Arla already gave this explanation for the British market at the end of last week. At that time, the company had no idea what the GDT auction this week would do (a sharp increase), and how the markets would develop further.
The milk price for May has therefore been set with a view to the end of April. According to that vision, it can be seen that the global milk supply is increasing slightly. Retail sales are also increasing, but to a lesser extent. Nevertheless, the markets are largely stable. Underlyingly, there is an increasing risk of more volatility.
Although the payment price for conventional milk in the Netherlands and Belgium is stable, the Dutch milk price is still increased by 8 cents per 100 kilos to a base price of €53,27 by adjusting a number of calculation factors. Arla is therefore slightly behind the average for May. See also the Boerenbusiness Milk price comparator.
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The Belgian payment price for conventional milk remains unchanged at a basic level of €51,66 per 100 litres. Here too, Arla is lagging behind the rest of the Belgian playing field with this price, as is evident from the Belgian Milk Price Comparator van Boerenbusiness.
The organic milk price will be increased. For the Netherlands, €1,78 will be added to the price, which will go to €69,71 per 100 kilos, with an annual supply of 1 million kilos. According to the Organic Milk Price Comparison van Boerenbusiness it continues to pay by far the highest organic milk price.