Two of the largest dairy processors in Europe have increased their farmgate milk price for the month of June. FrieslandCampina, the Dutch farmer-owned dairy co-op, announced on Monday it was increasing its farmgate milk price for June by 0.25c/kg to 34.25c/kg.

This is the first positive movement in Friesland’s milk price since last October. The Dutch co-op said it expects other “reference” dairy companies to also increase milk prices for June.

Arla

Meanwhile, Danish dairy co-op Arla has increased its June milk price by 1c/kg. The farmer co-op said last week it will increase its UK milk price to 28.58p/l.

"The increase (in milk price) has been possible due to the strengthening of the markets. Although weather conditions are now improving, the long, cold spring in some areas reduced output leaving commodity markets short of product,” said Arla director Johnnie Russell.

"This, coupled with increased export demand and strong European demand, has pushed prices higher, particularly in cheese and butter, while SMP prices have been slightly stronger than expected," he added.

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