Arla Foods amba to increase its October milk price
Arla Foods amba’s on account price for conventional milk will increase by 1 eurocent for October 2018.
As a result of this and a 0.19 pence quarterly adjustment in the currency smoothing mechanism Arla’s manufacturing price will increase by 1.09 pence to 32.47 pence per litre, from 1 October 2018.
Commenting on the decision to increase the price, Arla Foods amba board director, Johnnie Russell, said: “While Arla’s performance has strengthened enabling this welcomed increase, the recent recovery in commodity prices has slowed especially in the last week or so, however, the full impact of the drought is as yet unknown.”
- Manufacturing price based on every other day collection, top quality, one million litres,4.2% butterfat, 3.4% protein.
- Arla farmers are paid on constituents via a manufacturing schedule.For ease of comparison, the liquid price is 31.21 pence per litre, based on 4% fat and 3.3% protein.
- The Arla on-account prices for organic milk will increase by 3€c/kg in Sweden, 2€c/kg in Denmark and will remain unchanged in UK and Central Europe. However, in the UK the Arla on-account price for organic milk will increase by 0.19 pence per litre from 1 October due to the effects of the quarterly currency smoothing mechanism.
- The newly introduced adjustment for organic farmers who have decided to use EU granted exceptions to use non-organic forage will remain as a deduction of 3€c/kg.