Glass of milk in grass

Arla Foods amba confirms January 2021 milk price

Arla Foods’ on-account prices for conventional and organic milk will decrease by 1.2 euro cents per kilo, from 1 January 2021.  

When applied to the UK manufacturing litre this equates to a 1.08 pence per litre reduction from1 January. This takes Arla’s conventional milk price to 29.58 pence and organic milk to 37.94 per litre for Arla’s farmer owners. The quarterly currency smoothing mechanism, which this month is 0.05 pence per kilo, is offset by a cashflow balancing adjustment.

Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: “ Whilst global commodity prices have remained relatively stable, European prices particularly for fat, yellow cheese and mozzarella, have weakened of late in response to growing milk volumes and continuing uncertainty around COVID-19 impacts and Brexit. These market uncertainties are impacting the overall market for organic milk as well. As we go in to 2021, subject to the outcome of the Brexit negotiations, the current outlook is stable. ”

Alice Swift, UK Agriculture director at Arla continues: “While a decrease is never welcome news for farmers, despite a very disruptive period, we have managed to maintain a relatively stable conventional milk price over the last couple of years. Throughout the exceptionally disruptive and challenging year we have faced in 2020, our teams across the UK have continued to worked tirelessly to ensure we successfully played our part in feeding the nation and minimised any potential disruption for our customers. This continues as our nutritious dairy products make their way to millions of households across the UK as they prepare for Christmas.”


Contact Information

Flic Callaghan

07980 948159

Notes to editors

  • Arla farmers are paid on constituents via a manufacturing schedule. For ease of comparison, the liquid price is 28.50 pence per litre based on 4% fat and 3.3% protein.
  • Manufacturing price based on every other day collection, top quality, one million litres,4.2% butterfat, 3.4% protein.