Dairy giant Arla Foods has increased the price it pays to its farmer-members for milk after the co-operative said earnings “continued to be above budget”.
Arla supplies dairy commodities to industrial customers and said “progress” in “international industrial markets” for milk powder and cheese had been a factor in the decision to up payments.
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The company, which also makes consumer brands like Lurpak butter, said an “upturn” in the US dollar and sterling had played its part.
“The international industrial market for milk powder and cheese is the main driver behind the entire dairy market. Coupled with increased revenues from the rise in the US dollar and the British pound, we are now in a position to raise the price paid to our owners significantly,” said Arla CEO Peder Tuborgh.
From 31 May, Arla will pay 230.4 Danish øre per kg of conventional milk and 288.3 Danish øre per kg of organic milk.
Chairman Ove Møberg added: “Arla is seeing strong development, which is confirmed by the strategy we have chosen. The increased payment will be welcome news for all our co-operative owners who have been under considerable pressure for some time.”
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