​Arla Foods amba holds milk price for July

The Arla Foods amba on-account price for conventional milk is unchanged during July 2016.

However, July also sees a new quarter’s (April – June) average exchange rate being introduced to the pricing mechanism resulting in a small reduction of 0.07 pence per litre, taking the UK standard litre price to 19.05ppl.

Commenting on the decision, Arla Foods amba board director, Jonathan Ovens, said: “Growth in intake has reduced in recent weeks and this is helping to balance supply and demand. As a consequence, market prices that we have seen deteriorate over the past 12 months are levelling out.

“The trend towards a more stable market situation has strengthened over the last month and although we are not yet in a position to increase the price, holding the price sends out a signal to our owners, who continue to face challenging times, that we believe the market situation is more stable.”

Arla Foods is a global dairy company and co-operative owned by 12,700 dairy farmers with circa 2,700 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®, Cravendale, and Lactofree® with a turnover of €2.9 billion. 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 and has plans for it to be the first zero carbon site of its kind. The UK business has a team of approximately 3,500 colleagues located at its dairies, distribution centres and head office.