Arla April milk price is stand on with an extra 0.32ppl currency increase

Arla will not reduce its conventional milk price for April and the likelihood and expectation is that the next time Arla members milk price moves it will be upwards.

In addition, the April to June currency smoothing mechanism results in a 0.32ppl increase, which results in a 1st April standard liquid litre price of 26.39ppl and a manufacturing standard litre price of 27.43ppl.

Meanwhile, the Arla member organic standard liquid litre price for April will be 41.28ppl and on a manufacturing litre 42.92ppl.  However, for Arla’s Danish and Swedish producers they have a 1 Euro Cent a litre price reduction.

Last month’s Arla member price drop of 2.16ppl was a big bombshell, however, one month ago in this bulletin Ian stated that whilst the whopping cut was unwelcome if it was a case of cut once and cut deep it should be considered a reasonable result by farmers involved and that price drops under 26p looked less likely now.

Whether farmers like it or not as things look today most, if not all, GB milk purchasers will be under pressure to follow Arla’s lead.  That means fewer, if any, further price cuts are likely and possibly none for May 1st unless suppliers want to play Russian Roulette with their supply base.  To have a stand on liquid price of 26.4ppl plus through the spring flush, whenever spring arrives, is good news.