Arla Foods amba confirms another hold for October milk price

Arla Foods amba’s on account price for conventional and organic milk in the UK for October 2019 will once again remain unchanged.

However, this month it will be negatively impacted by a slight quarterly currency smoothing adjustment of 0.03pence per litre. When applied to the UK manufacturing price this will reduce Arla’s pence per litre for conventional milk to 30.19 pence and 41.94 pence per litre for organic milk from 1 October for Arla’s farmer owners.

Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: “With European milk volumes recovering slightly in the summer the market continues to be balanced. This in turn has helped keep prices stable. Although we are seeing some short-term seasonal increase in fat prices, talk of large butter stocks across Europe is damping down expectations of a significant price recovery. Increasing demand for Skimmed Milk Powder and cheese is ensuring that prices remain firm. Within Denmark and Central Europe organic markets remain stable, however, we are seeing increased supply in the UK putting pressure on prices and reduced demand for organic milk in Sweden has resulted in a reduction in the Swedish organic milk price this month.”

Graham Wilkinson, UK Agriculture director at Arla continues: “Delivering a sustainable milk price through growing the relevance of our brands and building a sustainable future together, is central to everything we do. Our recent commitment to helping 1,000 small scale farmers in Nigeria create better livelihoods and the growth of our Anchor brand to become the second largest BSM brand in the UK*, second only to our Lurpak brand, shows the strength of being part of a global dairy cooperative. Arla farmers owners already lead the way when it comes to animal welfare and sustainability and with these topics at the forefront of consumers’ minds, never before have farmers had the opportunity to play such a significant role in defining the future of dairy, not just in the UK but worldwide.”