Starting, October 1, Arla is cutting the milk price paid to its owners by 0.15 DKK per kilo for conventional milk, while the price for organic milk remains unchanged.

This marks the second consecutive month that conventional milk producers face a reduction in their settlement price from Arla. With the adjustment, the so-called advance price ends at 3.845 DKK per kilo for conventional milk, while organic producers will continue to receive 4.711 DKK per kilo.

The decline is mainly due to:

• Rising milk production both globally and within the EU
• Weakened demand in the retail sector
• Lower industrial market prices caused by large milk stocks
• Falling prices for cheese, milk powder, and butter

According to Arla, the growing volumes are putting global pressure on prices, which is also affecting Danish and Swedish milk producers.

Read the press release from Arla Sweden HERE

Photo: Arla

By LWM