Arla Foods is increasing its on-account price for conventional and organic milk by 1.5 euro cents per kg from July 2026. The rise is underpinned by stable conditions on global commodity markets.

Arla Foods has announced a price increase of 1.5 euro cents per kg for both conventional and organic milk, effective from July 2026.

With the increase, Arla’s on-account price for conventional milk of the best quality – based on Non-GM feed, FarmAhead™ Check, FarmAhead™ Supplement and maintenance costs and logistics allowance – will rise by 1.5 euro cents per kg. For organic milk, the on-account price increases by the same amount. Arla’s milk price for organic milk in Central Europe and the UK remains unchanged.

The quarterly exchange rate adjustment makes a small positive contribution to the on-account price.

Stable markets in the background
Arla points to a number of market conditions as the backdrop for the price movement. Global milk supply is stabilising at a high level with ample availability across Europe, retail prices are stabilising, and prices on global commodity markets are generally stable.

Milk production in the EU27+UK rose by 2.9 per cent in April – a slowdown compared with March – whilst component-adjusted production increased by 3.7 per cent. Growth is easing, according to Arla, due to a tapering of calving shifts, weaker margins and more challenging comparisons.

Sentiment on cheese and milk powder markets remains subdued. European cheese markets continue to show weak development, and milk powder prices have fallen in recent weeks under pressure from softer demand from the Middle East and high global production. Butter markets in Europe and the United States are likewise under pressure from seasonally high supply.

In Oceania, butter and AMF prices are being supported by a tight supply situation at the end of the season and solid demand from South-East Asia. Arla notes, however, that this appears to be a regional phenomenon rather than a sign of a broader recovery in global butter markets.

By Maja Løvstrup
Source: Arla Foods
Photo: Arla Foods