Arla’s milk price increased for the eighth month in a row

By December 1, Arla raised the milk price for its cooperative members by 7.5 Danish øre per kg for conventional milk and 14.9 Danish øre per kg for organic milk.

Following the increase, the on account price for conventional milk is now 404.6 Danish øre per kg, and for organic milk, it is 464.6 Danish øre per kg.

Overall, milk prices are influenced by stable global milk supplies, growing—but slower—sales to the retail sector, and stabilization in industrial markets, according to a press release from Arla.

In a market overview, Arla noted that milk production in the EU and the UK was slightly higher than expected in August but still lower than the same month last year. Outbreaks of the cattle disease Bluetongue negatively impacted production in Germany, Belgium, and France.

In the US, milk intake increased by 0.1% in September. While the underlying trend points to growth, a temporary decline is expected this fall due to avian influenza in California. Meanwhile, favorable weather conditions in New Zealand contributed to a 5.2% increase in production, the press release states.

Regarding specific dairy categories, Arla highlighted that cheese prices have stabilized, milk powder prices have risen significantly in recent weeks, and demand for butter and cream remains strong for the rest of the year.