Arla holds milk price but cuts organic as supply pressures build

Arla has held its conventional milk price for April while cutting organic returns, as high supply levels and market imbalance continue to weigh on the sector.

The co-operative confirmed its headline price for conventional milk will remain at 34.07p per litre, while organic milk will fall by 1.76ppl to 56.31ppl in the UK.

The move comes as global milk markets stabilise at elevated supply levels, with commodity prices beginning to firm despite ongoing uncertainty.

Arla said milk supplies have “stabilised on a high level”, with retail prices levelling off and global commodity markets showing signs of positive momentum.

Across Europe, supply remains plentiful, though markets are now broadly in balance after a prolonged period of volatility.

However, geopolitical tensions, particularly in the Middle East, continue to cast uncertainty over global trade and pricing confidence.

In the UK, demand for organic milk remains strong, but supply is now outpacing that demand, creating downward pressure on prices and driving the latest cut.

A quarterly currency exchange adjustment will provide a slight uplift for UK producers, increasing the on-account price by 0.09ppl.

Elsewhere in the sector, First Milk has announced it will hold its standard manufacturing milk price at 30.75ppl from 1 May, including the member premium, highlighting a broader trend of stability across the UK dairy market.

The coming months will be key in determining whether prices can hold at current levels or come under further pressure as supply and demand continue to rebalance.