Arla milk price breaks 50p/litre mark for August
© Tim Scrivener Arla’s farmgate member milk price will increase to 50.35p/litre from 1 August for a standard manufacturing litre.
This is a rise in the on-account price of 0.9p/litre on July levels. The August milk price will be up 17.15p/litre on the same month last year and prices have risen by 13.67p/litre during the first eight months of the year.
The 50.35p/litre rate is based on 4.2% butterfat and 3.4% protein and includes the minimum 13th supplementary payment of 1.34p/litre.
See also: Why low stocking rates are working for two Irish dairies
A standard liquid litre of 4% butterfat and 3.3% protein will increase to 48.42p/litre for Arla producers from 1 August, up 0.86p/litre on the previous month.
Producer on UK Arla Farmers Tesco contracts will see a price rise of 0.86p/litre to 49.84p/litre for August for a standard liquid litre.
UK Arla Farmers Morrisons producers will be paid an August price of 49.81p/litre, while those on UK Arla Farmers Morrisons grazing contracts will be paid 50.04p/litre for a standard liquid litre.
Arla UK agriculture director Paul Savage said: “As a co-operative, it is vital that we continue to support our farmer-owners during this significant inflationary period.
“On-farm cost pressures continue to dampen the overall supply of milk across Europe, and the extreme dry weather has added extra pressure to our farmer-owners and, consequently, their on-farm costs.”
Arthur Fearnall, Arla Foods amba board director and farmer-owner, welcomed the further increase in farmgate milk prices for both conventional and organic milk.
“The continuing on-farm cost pressures for feed, fertiliser and fuel have been further exacerbated over the past month due to the extreme dry weather. Commodity prices have weakened in recent weeks, but they still remain at a high level. The outlook is stable,” he said.
Organic
Arla’s organic milk price for August will increase by 0.9p/litre to 56.01p/litre for a manufacturing standard litre. An organic liquid litre will increase to 53.87p/litre.