Arla increases conventional and organic milk price for May
Arla has announced a 0.45 ppl increase for conventional milk and a 1.34 ppl rise for organic milk.
From May 1, Arla farmers supplying conventional milk will receive 40.45ppl and organic Arla farmers will receive 49.98ppl.
See also: Muller announces 0.5ppl milk price rise for June
Milk price
Arla Foods amba board director, and Arla farmer, Arthur Fearnall, said: "Global milk supplies continue to be slightly lower, retail sales continue to rise and commodity markets are stable. In the UK, the organic milk price increase is driven by growing demand. Overall, the outlook is stable."
Dairy farmers
Bas Padberg, UK managing director added: "As a farmer owned cooperative it has been a busy time in our democratic calendar, we have been meeting and having some engaging discussions with our members countrywide and as part of this we have been holding our elections to select our board of representatives for the next term.
See also: Retail inflation still higher than farmgate price changes
"This month we also announced a significant UK acquisition in the Arla Foods Ingredients business, of the Volac Whey Protein business subject to CMA approval. As one of the biggest food companies in the UK, it is just the latest move we have made to build a more sustainable future for dairy and our farmer owners."
Muller announces 0.5ppl milk price rise for June
Muller dairy farmers will receive a milk price of 38ppl from 1 June 2024, a 0.5ppl increase. This includes the 1ppl Muller Advantage premium, which is paid quarterly in arrears.
Milk price
Richard Collins, head of agriculture at Muller Milk & Ingredients said: "We recognise the challenges being faced this Spring and will continue to monitor supply and demand in the coming months to ensure we support our supplying farmers."
See also: Dairy-Tech - "We must get our story right and protect the image of dairying"
Butter prices show first sign of strengthening as others wait for the flush
These real market prices have also been boosted by the futures markets, which have positively soared by over €350 (£300) over the last two weeks to top €6,000 (£5,149) again. It has not been at this level since February.
SMP prices are not rising in line with fat prices, however, and demand is extremely weak. Prices remain below €2,400 (£2,050).
Cream prices are falling in the UK in line with the flush, and are now well below the £2.00/kg threshold. They are unlikely to recover significantly until the flush has passed. It is the same story for spot milk prices – they are down to around the 30p threshold or even below.
Read the rest of the article here.
Wet spring helps to stabilise dairy markets
Farmers and growers are getting increasingly frustrated and concerned over the wet spring, which is on track to be one of the wettest in living memory, and if the situation does not change for the better soon, the inflationary repercussions will surely be felt later this year.
On the flip side, and on a more positive note, the poor weather has helped demand to remain steady while helping to keep a check on seasonal milk production.
Read the rest of the article here.
Milk prices increase heading into spring
For some, it will be the first time they have had their wallets out this year due to their price competitiveness, while for those coming up from a lower winter price base, an April increase makes it four increases in four months.
Spring price increases are not as uncommon as one might think. While the sheer number of spring increases in 2022 at the start of the Russia/Ukraine war was an exception, several milk buyers have historically made positive moves in Q2.
