Arla surprises with a 1.33p/litre November price rise

Arla is adding 1.33p/litre to its conventional and organic suppliers’ farmgate milk price from 1 November, setting the pace for others.

This will lift the conventional price to 52.24p/litre based on a standard manufacturing litre of 4.2% butterfat and 3.4% protein.

The price is equivalent to a liquid value of 50.24p/litre based on 4% fat and 3.3% protein.

Producers on organic contracts with Arla will receive 57.02p/litre for a manufacturing standard litre.

See also: GDT dips again despite drop in global milk production

Arla Foods amba board director and farmer owner Arthur Fearnall said that while European commodity prices had stabilised over the past month, they remain at a high level.

As suppliers head into winter, this latest price increase was certainly welcome, he said.

“Global milk supply levels have also been stabilising. The outlook is stable, albeit with a certain level of  uncertainty,’’ said Mr Fearnall.

The rise comes as Paul Savage, agriculture director for Arla UK, said the price of production for dairy, including prices for feed, fuel and fertiliser, continued to rise to unprecedented levels.

“While the European organic milk market remains challenging, I am pleased that we have been able to work with our customers to secure further increases to support our farmers through these challenging times,’’ he said.

Market

The Arla rise comes in the face of falling milk futures prices, a third consecutive fall in the GDT online wholesale dairy index on 18 October, and uncertain consumer demand as the cost of living crisis continues to reduce spending power.