After more than two years of rising and stable milk prices for farmers, the settlement price for conventional milk is now being reduced. The reason is partly an increase in global milk production.

Effective today, Monday, September 1, Arla is cutting the advance price for conventional milk by DKK 0.075 (€0.01) per kilo, while the price of organic milk remains unchanged.

The price adjustment is due in part to higher global milk production, which has contributed to slightly lower prices on international dairy markets. At the same time, retail sales have fallen. Organic markets, however, remain stable.

Milk volumes are increasing both globally and within the EU. In June, milk production in the EU27 and the UK rose by 1.7 percent, adjusted for content, thanks to higher fat and protein levels. In the US, production rose by 5 percent on a content-adjusted basis, while in New Zealand, milk solids production jumped by 17.8 percent—clearly signaling the onset of the peak season. This was stated by Arla in a press release.

The downward adjustment means Arla’s advance price for conventional milk will now be around €0.53/kg, while the price for organic milk remains unchanged at approximately €0.63/kg.

Photo: Arla