0.5ppl increase on Arla's standard litre

Press release

Arla Foods UK will pay an additional 0.5ppl for milk supplied by members of its dedicated supply group, Arla Foods Milk Partnership (AFMP), from 1 June 2008

Hanne Sondergaard, deputy chief executive of Arla Foods UK, commented: "We have made good progress in our milk pricing negotiations and, despite the fall in commodity prices, it has been agreed that Arla's standard litre price will increase by 0.5p to 26ppl, with effect from 1 June 2008.

"The 0.5ppl increase reflects our commitment and that of our customers to improve our price within a very competitive marketplace."

Commenting on the increase, AFMP chairman, Jonathan Ovens, adds: "I believe this additional 0.5ppl offers an important boost to members at a time when on-farm costs continue to rise.

"Arla Foods recognises that there is volatility in the marketplace and has agreed to continue to monitor developments, and on-farm costs, to ensure that its current milk price reflects market conditions."

Arla Foods UK plc is home to some of the UK’s leading dairy brands including Cravendale, Lurpak and Anchor. Processing approximately two billion litres of milk a year Arla continues to be one of the UK’s leading dairy companies and a supplier of fresh liquid milk and cream to the top seven retailers.

Over 2,500 daily deliveries are made directly to stores nationwide and Arla brands can be found across the dairy category. As well as the leader of the butter, spreads and margarine sector, and a major supplier of other added value products including flavoured milk and cheese, Arla continues to build working relationships with Arla Foods Milk Partnership, a unique group of dairy farmers, which supplies around 90 per cent of Arla's total milk requirements.

Behind this leading business is a team of circa 2,800 people across the UK located at our dairies, distribution centres and head office.