Arla says milk prices will continue to rise

Dairy cooperative Arla Foods, makers of Lurpak butter, said on Tuesday significant price increases had boosted sales for the first six months of the year but warned consumers were spending less as prices are expected to continue rising.

rla, owned by more than 9,400 farmers in Denmark, the UK, Sweden, Germany, Belgium, Luxembourg and the Netherlands, said sales between January and June rose 17% year-on-year to €6.38 billion (6, 40 billion US dollars).

The increase was driven by “significant price increases” in Arla’s retail, hospitality and commodities trading businesses, albeit volumes were down.

The Denmark-based cooperative said higher prices will not translate into higher production due to higher costs on the farm, as the price of fertilizer has increased by 145%, fuel by 134% and cow feed by 36%.

“With ongoing inflationary pressures and political turmoil negatively impacting global growth, Arla expects the second half of 2022 to be even more challenging as global milk production is expected to continue to decline and contribute to persistently high milk prices which consumer confidence and consumption are likely to continue to fall,” the company said in a statement. Arla says milk prices will continue to rise

Fry Electronics Team

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