Arla lifts milk price for fourth consecutive month
© Tim Scrivener Dairy co-op Arla has raised its milk price for the fourth month running, as milk supplies continue to fall and markets improve across Europe.
Arla’s 2,700 British farmers will be paid 24.63p/litre for their milk in December, up 1.49p/litre from a month earlier.
Since September, Arla members have seen their prices rise 5.58p/litre in total, including the latest change.
Arla Foods amba board director Johnnie Russell said there would be a similar improvement for January.
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“European markets are continuing to strengthen, following the reduction in milk production, and we are seeing further positive signals from our international markets, despite the continuing difficulties in oil-producing areas,” he said.
“The outlook for the coming months remains positive.”
Latest AHDB figures show UK daily milk production is now averaging 35m litres/day – 9.8% down on the year and 5.8% lower than the three-year average.
Across Europe, deliveries from January to September remain 1.5% up on the twelve months before, but every month since June has been below the equivalent in 2015.
On the wholesale markets this week, EU skim milk powder prices were 14% higher on the year, butter was up 36% and whole milk powder was up 28%.
The Global Dairy Trade price index has risen at the auction’s past three fortnightly sales.