The advance price for conventional milk will rise by 1.0 euro cent per kilo, while the organic price stays unchanged in a month of relatively stable global commodity markets.

Arla, the Danish dairy cooperative, is raising its advance price for conventional milk by 1.0 euro cent per kilo from September 2026, whilst the organic milk price will remain unchanged. Arla announced the change in a statement.

Following the increase, Arla’s advance price for top-quality conventional milk will rise accordingly, based on parameters including non-GM feed, the FarmAhead™ Check and premiums, as well as logistics support and maintenance costs. The organic advance price for milk of equivalent top quality remains unchanged under the corresponding premium schemes.

Mixed picture on global markets
Price developments are being driven by a global milk supply that has broadly stabilised at a high level. General commodity prices are showing a degree of stability, although the protein market is trending upwards.

Global milk intake is rising. Intake across the EU and the UK increased by 2.2 per cent in May – equivalent to 2.8 per cent on an energy-corrected basis – whilst the US and New Zealand have also reported higher output and increased milk solids content in June.

Cheese markets remain active following a busy summer period, supported by solid demand. Mozzarella prices are high, Gouda prices have risen, and dairies’ production capacity continues to be well utilised. Meanwhile, global milk powder prices are rising, led by skimmed milk powder. The increase is being supported by lower milk intake in Europe, stock rebuilding in the Middle East and rising demand for American dairy products.

Butter markets, by contrast, remain weak due to a large supply of milk fat from Europe, the US and New Zealand. Both European production and stock levels are high, whilst American butter currently represents the cheapest origin on the market.

By Maja Løvstrup
Photo: Arla Foods