Milk prices on the rise as Arla returns back above 40p/litre

Higher farmgate milk prices have been announced by major dairy processors for March and April, with improved dairy demand at retail level and tighter global supplies helping to drive up the market.

Dairy producers supplying Arla will receive 40.06p/litre in March for a standard manufacturing litre of 4.2% butterfat and 3.4% protein, while organic producers will receive 47.38p/litre.

This is the sterling equivalent of a one eurocent increase on the previous month and Arla remains one of the frontrunners in the dairy sector at present.

See also: Organic Herd to pay 50p/litre by April and expand milk pool

Arthur Fearnall, Arla Foods amba board director and farmer, said: “Global milk supplies continue to decline; however, increases are now being seen in some areas. EU milk supplies are projected to grow due to the expected seasonal increases in the spring. 

“European commodity markets remain stable or going slightly down, and global commodity markets have increased lately.”

The co-operative added that its outlook for prices remains stable.

April

Farmers supplying Muller will receive a 1p/litre increase in April, putting its standard liquid litre price at 37.5p/litre, including its advantage premium.

Richard Collins, head of agriculture at Muller, said: “We recognise the ongoing pressures for supplying farms and with the market looking stable, we will continue to do what we can to support and protect security of supply.”

South Caernarfon Creameries will increase its payments by 0.75p/litre to 37p/litre in April for a standard manufacturing litre.

Meanwhile, Saputo Dairy is due to hold prices at 38p/litre, according to Milkprices.com.