Arla's milk price for August unchanged

Farmers who supply Arla will continue to receive 29.26ppl from August 2020
Farmers who supply Arla will continue to receive 29.26ppl from August 2020

Arla’s milk price for August will remain unchanged as countries begin to reopen following the Covid-19 lockdown period.

Arla Foods’ on-account prices for conventional milk and organic milk price will remain unchanged for August 2020.

This means the manufacturing price for conventional milk will be 29.26 pence per litre and the organic price 37.62 pence per litre.

Arla Foods amba board director, Arthur Fearnall, said overall, commodity prices had 'stabilised' after the initial impact of re-stocking.

"The last GDT auction saw a record increase in whole milk powder prices, driven largely by short-term demand for August and September.

"Outside the auction, prices did not increase as much and have soon settled back to pre-auction prices.

"Prices overall remain below pre-Covid-19 levels, with the current outlook remaining stable,” Mr Fearnall said.

Arla farmers are paid on constituents via a manufacturing schedule. For ease of comparison, the liquid price is 28.17 pence per litre based on 4% fat and 3.3% protein.