Arla Increases Conventional And Organic Milk Prices
Source: The DairyNews
Arla Boosts Conventional and Organic Milk Prices in Anticipation of a 'Stable' New Year
In a strategic move aligning with a positive outlook for the upcoming year, Arla, a prominent milk processor, has opted to raise prices for both conventional and organic milk categories.
Effective immediately, the manufacturing price for conventional milk in the UK will stand at 37.58ppl, while organic milk will be priced at 44.61ppl.
Expressing optimism, Paul Savage, Arla UK's Agriculture Director, noted, “Both conventional and organic markets are showing signs of growth, and our retail branded sales are on an upward trajectory. This substantial price increase, amid a stable outlook, aims to instill confidence among our farmer owners as we embark on a new year.”
Arla Foods amba Board Director, Arthur Fearnall, echoed the sentiment, stating that this development marked a promising beginning for the cooperative's UK and European suppliers. He attributed the positive shift to the continued improvement in retail sales post the third quarter of 2023, along with a recovery in global commodity prices, albeit slightly weakened after meeting seasonal demands.
For farmers in central Europe with Arla contracts, the organic milk prices witnessed a notable rise of 5€ cents per kg starting January 1, 2024. Fearnall explained, “The increase in organic prices is a result of the certification scheme's transition to the organic association Naturland, coupled with enhanced profitability from retail positions. The overall outlook remains stable.”
This upward pricing trend aligns with the broader market trend, as evidenced by the third consecutive increase in the Global Dairy Trade (GDT) price index, which experienced a 1.2% rise at the first trading event of 2024.
Effective immediately, the manufacturing price for conventional milk in the UK will stand at 37.58ppl, while organic milk will be priced at 44.61ppl.
Expressing optimism, Paul Savage, Arla UK's Agriculture Director, noted, “Both conventional and organic markets are showing signs of growth, and our retail branded sales are on an upward trajectory. This substantial price increase, amid a stable outlook, aims to instill confidence among our farmer owners as we embark on a new year.”
Arla Foods amba Board Director, Arthur Fearnall, echoed the sentiment, stating that this development marked a promising beginning for the cooperative's UK and European suppliers. He attributed the positive shift to the continued improvement in retail sales post the third quarter of 2023, along with a recovery in global commodity prices, albeit slightly weakened after meeting seasonal demands.
For farmers in central Europe with Arla contracts, the organic milk prices witnessed a notable rise of 5€ cents per kg starting January 1, 2024. Fearnall explained, “The increase in organic prices is a result of the certification scheme's transition to the organic association Naturland, coupled with enhanced profitability from retail positions. The overall outlook remains stable.”
This upward pricing trend aligns with the broader market trend, as evidenced by the third consecutive increase in the Global Dairy Trade (GDT) price index, which experienced a 1.2% rise at the first trading event of 2024.
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