Arla Foods amba increases its milk price for October
Arla Foods is raising its milk price to owners by two eurocents per kilogramme from 1 October. This follows an increase in the September price. In addition, there is also a positive currency impact as a result of the new quarter’s average exchange rate being introduced to the pricing mechanism.
When the increase to the on-account price, and currency impact, are applied to the UK standard litre, the increase is 1.6 pence, taking the conventional price to 21.65 pence.
Commenting on the decision, Arla Foods amba board director, Johnnie Russell, said: “This is the second consecutive month that Arla has increased its milk price. While the price is still not adequate, the one pence increase in September, coupled with the 1.6 pence increase in October, is good news for our farmer owners and demonstrates the strength of our business model which allows us to increase the returns to our farmer owners in line with our formulaic pricing mechanism.
“Commodity markets, as well as yellow cheese markets in Europe, are continuing to strengthen, and prices across European retail markets also continue to firm. Milk production in the EU continues to slow down, and we expect this trend to carry on over the coming months.”
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.