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Arla announces milk price rise for July

Arla Foods has today announced that it will be increasing its conventional milk price for July by two eurocent.

When applied to the UK manufacturing litre, the total increase comes to 1.92 pence per litre from July 1, taking Arla’s standard price to 30.50 pence per litre.

This follows price increases to milk in April, May and June.

According to Arla, the increase is due to the impact of the weather in the first half of the year, which has resulted in European milk volumes being lower than expected.

This, as well as strong demand particularly from Asia, has seen commodity market prices grow strongly in recent months.

Strong supply in the organic markets continues to keep pressure on organic prices.

Commenting on Arla’s decision to increase its milk price, Arla Foods board director, Johnnie Russell, said: “I am confident this will be welcome news to our farmer owners, who have been experiencing challenging weather conditions, which have dampened milk volumes from farm.

“I am pleased to say that the overall outlook for the coming months remains positive.”



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