Arla Foods amba milk price

Arla Foods amba is reducing its owner on-account price by €1.5 cents per kg, with effect from 1 September 2014.

When applied through the pricing mechanism, this equates to an overall 1.2 pence reduction in Arla’s UK standard litre price, taking it to30.38 pence.

Commenting on the reduction, Ash Amirahmadi, Arla UK’s head of milk and member services said:  "Global commodity markets have fallen sharply over recent months - a development that has affected dairy companies, including Arla. In addition, Russia has announced a ban on agricultural import from certain states, including the EU. The ban has affected Arla Foods’ exports and we are now unable to export products to Russia.

"This further reduction in Arla’s global milk price is necessary due to a continued downward movement in global and European prices, made worse by the Russian import ban."

Arla Foods is a global dairy company and co-operative owned by 13,500 dairy farmers circa 3,000 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 sixth 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. It processes 3.5 billion litres of milk a year and has a turnover of £2.2 billion. As well as being number one in fresh liquid milk, 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 4,000 colleagues located at its dairies, distribution centres and head office.