Arla Foods amba confirms its May milk price

Although Arla Foods amba is decreasing its on-account price for conventional milk by one eurocent per kilogramme from 1 May 2017, the UKAF board has taken the decision to maintain the conventional price in the UK at 28.13 pence per litre*.

Commenting on the UKAF Board’s decision, Jonathan Ovens, Arla Foods amba board director said: “The one eurocent Arla Foods amba reduction has been fully reflected in UKAF’s cash flow. However, to avoid the unintended consequence of a double on-farm impact of a milk price reduction at the same time as maximum seasonality deductions, the board has adopted a pragmatic and prudent approach to use expected future benefits from the currency exchange mechanism to balance the milk price throughout May.

“Over the calendar year of 2017, and in accordance with Arla's farmer-owned principles, the cash flow will be balanced and money in will equal money paid out. The UKAF board will continue to carefully monitor the cash flow and ensure that the integrity of the Arla Foods amba payment model is protected.”

*Manufacturing price based on every other day collection, top quality, one million litres,4.2% butterfat, 3.4% protein.  Source: MilkPrices.com

• Arla Foods is transitioning to a manufacturing schedule only with effect from 1 January 2018, where Arla farmers will be paid on constituents. For ease of comparison, the liquid price is 27.03 pence, based on 4% fat and 3.3% protein.

Arla Foods is a global dairy company and co-operative owned by 12,000 dairy farmers with circa 2,500 of whom are British.

Dating back to 1881, Arla’s purpose is to secure the highest value for its farmers’ milk, while creating opportunities for their growth. With production facilities in 11 countries and sales offices in a further 30, Arla is the world’s fifth largest dairy company and largest supplier of organic dairy products. Arla has a total of more than 18,000 colleagues and its products are sold under the well-known brands Arla®, Lurpak® and Castello® in more than 100 countries.

Arla Foods UK is the largest dairy company in the country and is home to leading dairy brands Anchor®, Arla Cravendale®, and Arla Lactofree® with a turnover of €2.2 billion. The UK is largest market within the Europe Zone, contributing 35% of the zone’s turnover and also comprises 25% of the Group revenue.

As well as being a leading supplier of fresh milk, number one in butter, spreads and cream, Arla is the UK’s largest cheese manufacturer. It has also built the world’s largest fresh milk facility located at Aylesbury that later this year will become the first net zero carbon site of its kind. The UK business has a team of approximately 3,500 colleagues located at its dairies, creameries, distribution centres and head office.