0.9ppl (Euro Cent per kg) milk price increase for Arla Members – from 1st November

This increase takes producers manufacturing standard litre price to 33.52ppl and based on a liquid standard litre to 32.26ppl.

 

Meanwhile, the Arla members organic milk price remains a stand on for November at 40.98ppl (manufacturing) and 39.43ppl (liquid).

 

Arla’s Press release announcement of this increase is far from a fanfare and clearly highlights that Arla’s top Management realise it’s a step in the right direction but by no means enough to cancel out on farm cost inflation particularly in fertilizer and fuel.

 

There are a number of milk purchasers who claim particularly their larger customers are resisting price increases. It might be a good idea for those processors to highlight to the obstinate customers Arla’s Press release message which in Northern translation means you will have to pay more for your milk or risk continuity of supply.

 

It’s another wakeup call and the harsh reality is if processors fail to recover on farm cost increases plus their own, one or more will go to the wall. In fact, it’s not a case of will a processor go to the wall, more a case of when.

 

It’s a very serious message either all retail and food service customers accept the necessity to pay more for UK Dairy products or risk continuity or supply as well as run the risk they will be involved in farmers quitting and their processors going out of business and/or unable to maintain product supplies.

 

You have been warned