Arla Foods amba confirms milk price increase for conventional milk while organic milk will re-main unchanged
From 1st October 2022, the Arla on-account price for conventional milk will increase by 1.0 €c/kg. The on-account price for organic milk will remain unchanged but is impacted by currency.
When applied to the UK manufacturing price for conventional milk this is a 0.55 pence per litre (ppl) increase, bringing Arla’s farmgate conventional milk price to 50.91ppl. This is to account for the quarterly currency exchange rate adjustment which negatively impacts the on-account price by 0.33 ppl.
Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: “This months’ increase to our farmgate milk price for conventional milk comes following yet another rise in European commodity prices. In the organic market, at the current high pricing levels, organic demand is under pressure. Nonetheless, it is reassuring to see a stablisation in the overall supply of milk across Europe. The outlook is stable.”
Paul Savage, Agriculture Director for Arla UK adds: “There is no doubt that the organic market continues to face challenges as consumers trade down in the light of the sustained inflationary pressure. However, as a cooperative, we continue to monitor these developments and remain committed to supporting the products our organic farmers work hard to produce.”
Notes to editor
- Arla farmers are paid on constituents via a manufacturing schedule. For ease of comparison, the liquid price is 48.96 ppl for conventional milk and 53.87ppl for organic milk, based on 4% fat and 3.3% protein.
- Manufacturing price based on every other day collection, top quality, one million litres, 4.2% butterfat, 3.4% protein.
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