0.9ppl milk price rise for Arla conventional members rocks over 50p from 1st August
Posted on: 27/07/22
According to Ians records Arla GB members have never had a positive or negative price adjustment on the 1st August but as we all know these are non standard times in the Dairy Industry.
The 1st August member price will increase by 1 euro/cent/kg for Arla conventional members which converts to a 0.9ppl increase based on a manufacturing standard litre.
In the press release there is reference to
“Commodity prices have weakened in recent weeks however; they still remain at a high level. The outlook is stable.”
Ians interpretation of this comment is that Arla are very close to farmgate prices levelling off and stabilising, assuming production doesn’t tank down or show signs of rocketing up. So, whilst the odd additional Arla member price increase could still flow it will be small and its even possible this is the last increase in this current run. The question then is how long will farmgate milk prices stabilise at circa 50ppl?
All eyes will turn to farmgate price moves by other GB processors due to be announced in the coming days followed by the next GDT Auction results due out next Tuesday afternoon.
This 1st August increase results in a conventional Arla members manufacturing standard litre price of 50.35ppl and based on a liquid standard litre 48.42ppl.