The Dutch dairy cooperative FrieslandCampina is reducing its conventional milk price by 25 euro cents – and expects Arla to hold its conventional price steady.

FrieslandCampina is cutting its conventional milk price by 25 euro cents in June to €41.50 per 100 kilograms. The reduction has been described by the cooperative as a correction relative to the May price, according to the Danish agricultural trade publication LandbrugsAvisen.

The Dutch cooperative expects competitors – including Arla – to keep their conventional milk prices unchanged in June. The picture is different on the organic side: FrieslandCampina anticipates that competitors will lower their organic prices, but is itself holding its price at €61.75 per 100 kilograms. This decision is also framed as a correction relative to May.

Arla announced an increase in May
Arla is due to announce its June price on Friday 29 May. In May, the cooperative raised its conventional milk price by 14.9 Danish øre per kilogram to 302.2 øre per kilogram for top-quality milk – according to LandbrugsAvisen, the first price increase since last summer. The organic milk price remained unchanged at 426.6 øre per kilogram.

Arla attributed the increase to continued growth in global milk supply, stabilising retail prices, and ongoing adjustment to price trends on global commodity markets.

By Maja Løvstrup
Source: LandbrugsAvisen
Photo: FrieslandCampina