0.9ppl Milk Price increase from Arla has left others furious

Rumours that Arla were set to increase its member Milk Price ahead of the spring flush were rubbished to Ian by several buyers last week as impossible.

Well Arla have once again done their own thing their way only this time they have really piled the pressure on GB milk processors ending a very impressive 14 month price hold (excluding minor currency adjustments) with a price increase of 1 Euro Cent.

All the talk last week, particularly from liquid processors, pointed towards them having already decided farmgate milk prices need to be cut particularly in respect of a dramatic fall in cream values which www.milkprices.com report as 10p KG in a week with the spot price now down to 25ppl.

If some of those buyers press ahead with planned farmgate price cuts taking their standard liquid litre prices below 25ppl its likely some farmers faced with no alternative milk purchaser will simply throw the towel in and hang their clusters up. Enough will be enough especially given the Arla member increase.

If Arla were to open its recruitment gates the queue would be very long and anything but orderly.

The latest Arla price increase of 1 Euro Cent results in the following 1st March conventional standard litre prices

                        Manufacturing 30.94ppl ( + 0.9ppl)

                        Liquid              29.75ppl ( + 0.86ppl)

Meanwhile the Arla Member Organic milk price has been reduced by the same 1 Euro Cent resulting in a manufacturing standard litre price of 39.98ppl and a liquid litre price of 38.44ppl.