As global supply and soft commodity markets continue to weigh on dairy profits, Arla has opted for stability by leaving milk prices unchanged for March.
The co-operative confirmed that conventional milk prices will remain at 33.98 pence per liter in March 2026, with organic headline prices remaining at 57.98 pence.
The decision was taken amid signs that global milk supplies are stable at a high level. Although commodity markets are showing signs of stabilizing, retail prices are still adjusting to the initial decline, with lags and fluctuations between markets and product categories.
Across Europe, supplies remain plentiful. Arla said market balance appeared to have been achieved, albeit at a “slightly higher level than expected” due to capacity constraints.
But that balance remains fragile. Continued strong production limits the scope for price increases, and uncertainty persists across export and domestic markets.
Organic producers face additional headwinds. Ara warned that the outlook remained uncertain, with lower selling prices and lower volumes hurting profitability in several markets.
Meanwhile, First Milk has also opted to keep prices unchanged from March, providing some stability to its members as wider sector earnings come under new pressure.
The Dairy Co-operative Society has confirmed that the milk price, including member premium, will remain unchanged at 30.25 per cent per production standard liter. This is especially below Arla’s traditional overall price.
Both decisions suggest a period of consolidation in farmgate pricing, with processors wary of moving prices in either direction while supply remains strong and demand signals are mixed.
With European production still strong and the organic market under stress, we think it is unlikely that we will see a significant increase in the short term.
