Arla Foods amba confirms May milk price
The Arla on-account prices for conventional and organic milk will decrease by 1 eurocent for May 2020. When applied to the UK manufacturing price Arla’s this is a 0.9 pence per litre reduction for its farmer owners bringing conventional milk to 29.89 and organic milk to 38.93 pence per litre, from 1 May.
Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: “Because of the COVID-19 pandemic and the actions taken by governments to limit its spread, the dairy market has moved into unprecedented territory. Despite some short-term increase in retail sales, the closure of many foodservice businesses, alongside the Spring peak in milk production and the uncertain global economic outlook, has caused significant reductions in commodity market prices across all categories in the space of a few weeks. Due to the continuing impact of the current situation, the outlook remains uncertain.”
Graham Wilkinson, Agriculture Director at Arla Foods UK adds: “The impacts of Coronavirus have been felt right across the dairy industry, not just in the UK but around the world. As a cooperative owned by dairy farmers, Arla is not immune from these developments and we are working hard to manage the significant fluctuations in demand and the challenges this brings. Following the announcement from the government to temporarily relax competition rules, we welcome the opportunity for the industry to be able to work more closely together at this time to build more robust plans to navigate through this crisis.”
Notes to editors
- Arla farmers are paid on constituents via a manufacturing schedule. For ease of comparison, the liquid price is 28.74 pence per litre based on 4% fat and 3.3% protein.