Arla Foods amba’s on account price for conventional milk for November 2019 will once again remain unchanged, however, the UK organic milk price will reduce by 0.91 pence per litre.
When applied to the UK manufacturing price Arla’s pence per litre for conventional milk will remain at 30.19 pence and reduce the organic price to 41.03 pence per litre, from 1 November for Arla’s farmer owners.
Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: “Global milk production remains stable, with slight growth in Europe and New Zealand, being offset by reductions in other major exporting areas, particularly North and South America. This limited growth means that commodity prices remain firm and increased demand is expected to balance any increases in supply. Though whole milk powder prices remain steady, prices for skimmed milk powder continue to increase steadily as a result of continued strong demand. Butter prices are expected to follow the normal seasonal pattern, holding firm in the final quarter. Organic markets remain stable, however, we have seen a decline in UK organic sales in the second half of 2019. This has ultimately had a knock on impact on the supply and demand balance and has resulted in a reduction in the UK organic milk price this month, so our focus remains on demand driving activities.”
Graham Wilkinson, UK Agriculture director at Arla continues: “Being part of a global dairy cooperative working together from farm to fork, we have a great opportunity to build confidence and create the future of dairy. The global dairy category continues to grow and is recognised by health authorities as a key source of nutrition that is important in maintaining and improving health for our growing world population. However, today, customers and consumers demand increased transparency and high standards within sustainability areas such as animal welfare, climate and people. So, it is no surprise that Arla UK 360 has continued to grow with several major retailers now on board, creating real scale and enabling its continued development as an industry leading programme. Standing still is not an option. Consumers expect Arla and other suppliers to provide more sustainable products. We understand the need to move forward to continue to build confidence in Arla and in dairy, and that we need to take further steps towards sustainable dairy farming and production. We will take these steps together.”