From May 2026, Arla’s on-account price for conventional milk will increase, whilst the price for organic milk remains unchanged.

From May 2026, Arla is raising its on-account price for conventional milk by 14.9 øre/kg, equivalent to 2.0 €c/kg. The price for top-quality conventional milk – based on Non-GM feed, FarmAhead™ Check, FarmAhead™ Supplement, and maintenance costs and logistics allowances – will thereby stand at 302.2 øre/kg.

The on-account price for top-quality organic milk is maintained at 426.4 øre/kg.

Arla points to three factors behind the price development: global milk supply continues to grow, retail prices are finding their level, and prices on global commodity markets are moving in line with market developments.

Stable European market with limited spot market supply
Milk production in the EU has remained stable through the early part of the first quarter, supported by favourable operating margins and strong milk deliveries in key regions. However, according to Arla, growth may begin to slow as the seasonal peak approaches. In the United States, supply developments appear to be stabilising, whilst New Zealand continues to deliver strongly for the time of year, albeit with increasing weather-related risks.

In the cheese market, a high level of European production in the first quarter has not translated into a corresponding surplus on the spot market. On the contrary, buyers in several areas have had to pay a premium to secure supplies of commodity cheeses such as Gouda and Cheddar.

Powder markets are relatively stable, with prices broadly unchanged despite some weakness in global reference prices. Previously strong import demand from international buyers has drawn down stocks more than anticipated, thereby contributing to market stability.

The European butter market is likewise described as stable in recent weeks, although global reference prices have shown increased volatility. Regional demand has supported price levels despite a generally ample milk supply and high production volumes across much of Europe.

By Maja Løvstrup
Photo: Arla