Arla boosts payments to its key suppliers

Danish dairy producer Arla Foods has increased its payments to co-operative members in response to buoyant global milk prices. The company is expecting to its profits to rise this year owing to a shortage of milk in the global dairy market.

Arla Foods has increased its payments to milk suppliers by DKK 0.228 (US$0.041) per kilogram, to an average price of DKK2.34 (US$0.42). "After several tough years of real deflation in the price of dairy products, we now see an opportunity to increase the milk price for our owners," said Peder Tuborgh, CEO, Arla Foods. 

"Currently, it's the milk powder market that is driving the upward trend, but we also expect global market prices for cheese and butter to rise significantly. The initial, recently announced price rises form the basis of the increased account price.