Arla Foods, the Danish dairy giant behind brands like Cravendale and Lurpak, has warned consumers to brace for higher milk prices later this year due to a global milk production shortage and rising commodity costs. CEO Peder Tuborgh highlighted that supply and demand are currently unbalanced, exacerbated by wet weather in northern Europe and ongoing uncertainty in agricultural policies. Despite a 6% drop in first-half revenue to €6.6 billion, Arla raised its full-year revenue forecast to between €13.4 billion and €13.9 billion, anticipating continued demand for dairy products as consumer purchasing power improves. The company reported an overall volume growth of 11% in its brand portfolio, although it remains uncertain how consumers will respond to rising retail prices. Arla's strong performance in the first half of 2024 reflects a competitive milk price, allowing for reinvestment in sustainability efforts while navigating a volatile global market.