1.8ppl price increase for Arla members retains Arlas position as the pace setters
Posted on: 22/02/22
Arla have announced a further 1.8ppl (2 euro cents) price increase from March 1st both for its conventional and organic members.
The resulting www.milkprices.com standard litre prices are
Standard Litre Conventional Organic
Manufacturing 39.38ppl 46.83ppl
Liquid 37.88ppl 45.05ppl
The increase is mainly attributed to strengthening global commodity prices and, in the announcement, Arla fully recognise that the cost of producing (and processing) milk shows no signs of levelling.
For sure Arla are the pace setters which others will have to follow whether they like it or not. Back in December Ian stated in his 2022 outlook that some producers would receive a 40ppl standard litre price. Well, it could come very soon for Arla members and M&S aligned producers (see below) but even at that level with current costs its unlikely to trigger a rush to produce more milk. Encouraging price signals today are aimed at ensuring processors like Arla have the milk they require in winter 2022/23. If they fail new recruits cannot be ruled out. Until then the Arla doors remain shut.