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Arla ups payment to farmers as market conditions improve

21-May-2010

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Arla has increased payments to its Danish and Swedish dairy farmers thanks to currency fluctuations and progress in international markets for milk powder and cheese.

The co-operative announced this week that it will raise the price paid to its co-op owners by DKR 0.15 from May 31. The Arla price per kg for conventional milk will therefore increase to DKR 2.304 and DKR 2.883 for organic milk.

Arla CEO Peder Tuborgh said: “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.” The comments were made after a board meeting on 19 May.