Global overproduction of milk continues to put pressure on the market, leading to a reduction in Arla’s milk price paid to its farmer owners.

For the third consecutive month, Arla is lowering its conventional milk price. From November, the price will decrease by a further 22.4 øre per kilo (around 3 euro cents), bringing the on-account price to 362.1 øre per kilo (approximately 48.2 euro cents). The price for organic milk remains unchanged at 471.5 øre per kilo (around 63.1 euro cents), according to a press release from the dairy cooperative.

The adjustment reflects ongoing global overproduction, which continues to weigh on international dairy markets. Milk output is increasing across the EU, the United States and New Zealand, where favourable conditions and higher yields have significantly boosted supply. At the same time, retail sales have stagnated, while industrial markets are reducing prices due to large stock levels.

Over just three months, the milk price has dropped by a total of 45 øre (around 6 euro cents)

Photo: Arla
By LWM