Incredible 4.49ppl further increase for Arla's Conventional and Organic members means a total of over 8ppl in one month.

Last month when Arla announced a record breaking 4 euro cent 1 ^st  May increase equating to 3.58ppl many believed this would be the record.  Today Arla have top trumped by 25% with the announcement from 1 ^st  June that that their conventional and organic members milk price will increase by further 5 euro cents equating to 4.49ppl.

This means in the space of one month Arla’s members milk price has increased by 8.07ppl.

This will undoubtedly be a nightmare to several liquid and cheese processors who cannot maintain the extraordinary pace of farmgate milk price increases set by Arla.

The latest 4.49ppl increase results in Arla’s conventional manufacturing standard litre price from 1^st June of 47.79ppl and for its organic suppliers 54.34 ppl.

Based on a liquid standard litre the farmgate milk price increases to 45.97ppl and for Organic suppliers to 52.27ppl

 

The feeling is that there is still more to come, partly to cover continuing on farm inflation but a major concern is that these record prices are still not converting to additional milk and with that hangs the harsh reality that there could be a shortage of milk in the coming winter until farmers have the confidence to push on.