Arla Foods will increase the price of conventional and organic milk starting August 1, 2024, with a rise of 0.74 ppl (0.83 €c/kg) for both types. The new UK manufacturing prices will be 42.44 ppl for conventional milk and 53.31 ppl for organic milk. This price adjustment reflects stable global milk supplies and a steady market outlook. Concurrently, Arla Foods is enhancing its sustainability efforts through its FarmAhead™ initiative, which provides comprehensive tools and support for sustainable dairy farming, including metrics for sustainability, incentives for improvement, commercialization of sustainability practices, and ongoing technological innovation.
Introduction to Arla Foods
Arla Foods is a leading global dairy company, renowned for its commitment to quality and sustainability. Founded in Denmark in 1881, Arla operates across multiple continents, serving millions of customers with a wide range of dairy products. With a focus on innovation and sustainable practices, Arla has established itself as a major player in the dairy industry, dedicated to delivering high-quality dairy products while minimizing environmental impact.
Overview of Price Increase
Effective from August 1, 2024, Arla Foods will raise the on-account price for both conventional and organic milk. This adjustment will see an increase of 0.74 pence per liter (0.83 €c/kg) for each type of milk.
| Milk Type | Current Price (ppl) | New Price (ppl) | Increase (ppl) | Increase (€c/kg) |
| Conventional Milk | 41.70 | 42.44 | 0.74 | 0.83 |
| Organic Milk | 52.57 | 53.31 | 0.74 | 0.83 |
Market Conditions
Arthur Fearnall, a board director at Arla Foods amba and an Arla farmer, noted that the global supply of milk remains stable, despite retail sales growth slowing down slightly. The recent increases in commodity markets, particularly driven by higher fat prices, are beginning to stabilize. Fearnall’s comments suggest that the overall outlook for the dairy market is balanced, with no major disruptions anticipated.
Focus on Sustainability
Arla Foods is also advancing its sustainability efforts alongside the price adjustments. Paul Dover, UK Agricultural Director, highlighted the ongoing promotion of FarmAhead™, a new initiative aimed at enhancing sustainability in dairy farming.
FarmAhead™ Initiative: This comprehensive program encompasses a full suite of tools and support systems designed to promote sustainable practices on dairy farms.
Key components include:
1. Farm Measurements:
- Sustainability Metrics: Tools and technologies to accurately measure various sustainability metrics on dairy farms. This includes tracking carbon emissions, water usage, energy consumption, and waste management.
- Data Collection and Analysis: Advanced systems for collecting and analyzing data to provide actionable insights and benchmarks for improving sustainability practices.
2. Support and Incentives:
- Training Programs: Educational programs and workshops to train farmers on best practices in sustainability and efficient farm management.
- Financial Incentives: Grants and subsidies to support farmers in implementing new technologies and practices that enhance sustainability.
- Technical Support: Access to expert advice and support for addressing specific challenges related to sustainability.
3. Commercialization:
- Market Access: Strategies to help farmers commercialize their sustainability efforts, including certification programs and marketing support to highlight their environmental achievements.
- Partnerships and Collaborations: Collaborations with industry partners to promote and integrate sustainable practices across the supply chain.
4. Innovation:
- Research and Development: Continuous investment in R&D to develop new technologies and methods for improving sustainability in dairy farming.
- Pilot Projects: Initiatives to test and refine innovative practices and technologies on a smaller scale before broader implementation.
- Technology Adoption: Encouragement and support for the adoption of cutting-edge technologies such as precision agriculture, automated systems, and renewable energy solutions.
Strategic Goals
Arla’s price increase reflects broader market conditions and aligns with its commitment to sustainability. The company aims to support farmers in enhancing their environmental practices while maintaining market stability. The introduction of FarmAhead™ is part of a larger strategy to integrate sustainability into the core operations of dairy farming.
Climate and Nature Initiatives: By investing in sustainability and innovation, Arla seeks to improve its climate and nature initiatives. The company’s goal is to contribute positively to environmental conservation while ensuring that dairy farming remains viable and profitable.
Arla Foods’ decision to raise milk prices for August 2024 aligns with current market trends and underscores the company’s dedication to both economic stability and environmental sustainability. The company’s efforts through FarmAhead™ reflect a proactive approach to enhancing the sustainability of dairy farming, aiming to support farmers and contribute to the broader goals of climate stewardship and sustainable agriculture.
