Arla rise takes price close to 50p/litre for July milk

Arla’s farmgate milk price will increase by 1.66p/litre from 1 July for a standard manufacturing litre.

Members will be paid a market-leading price of 49.45p/litre for a manufacturing litre with 4.2% butterfat and 3.4% protein for collection every other day.

This price is equal to a standard liquid litre of 47.56p/litre based on 4% fat and 3.3% protein.

See also: Could thermal imaging transform livestock health management?

The on-account price was subject to a 0.12p/kg reduction to account for a quarterly currency exchange rate adjustment.

Arthur Fearnall, board director and farmer owner, said the price rise was much needed as on-farm costs had seen drastic inflation in recent months.

“Commodity prices, which have been climbing, have now begun to stabilise although remaining at a high level, and we continue to see a decline in the overall milk supply across the EU. Nonetheless, the outlook for the future is stable,” he said.

Organic price

The Arla organic milk price has increased by 0.74p/litre, taking it to 55.11p/litre from 1 July.

Arla UK agriculture director Paul Savage said: “In the UK, we continue to face a period of significant inflation which, in particular, is adding pressure to the UK organic market overall. It is against this backdrop that we are pleased to have been able to secure this latest increase in the overall price for our organic milk.”

Freshways

Freshways has confirmed that it will pay 50p/litre for milk in September.

After previously setting this as a target, managing director Bali Nijjar has written to suppliers to confirm that the standard litre price for September of 50p/litre is guaranteed.

The liquid processor has previously confirmed a July price of 45p/litre for a standard liquid litre of 4% butterfat and 3.3% protein.

Futures contracts: farmer views wanted

Do you use futures and options markets to help you manage risk? Or are you interested to learn more? Farmers Weekly is keen to find out the extent to which UK farmers use these markets. Complete our survey here.

Take the survey

Futures markets and commodity risk management online course:

  • Risk management strategies for a more predictable financial performance
  • Educated conversations when collaborating with your advisors
  • Negotiate better prices with your grain merchants

View course