Arla Foods confirms reduction in milk price from May

The Arla Foods Milk Partnership board has decided to reduce the standard litre price by one pence, with effect from 1 May 2009, taking Arla’s standard litre* to 24 pence.

The decision is a result of the continued weakness of dairy commodity markets and the consequential impact on all of Arla’s surplus cream returns.

Commenting on the decision, AFMP Chairman, Jonathan Ovens, said: “Despite the majority of Arla’s milk going into the premium liquid milk market, the balance is vulnerable to commodity prices. Having tracked the falling commodity markets, the board made the decision to drop the price to reflect the impact on Arla’s surplus cream returns.”

Hanne Søndergaard, deputy CEO of Arla Foods UK plc, with responsibility for milk procurement added: “The first quarter of 2009 has proved to be tough and while we believe the long-term prospects of the industry are positive, indications are that the tough environment will continue for the foreseeable future.”

Arla Foods UK plc is home to some of the UK’s leading dairy brands including Cravendale, Lurpak and Anchor. Processing approximately two billion litres of milk a year Arla continues to be one of the UK’s leading dairy companies and a supplier of fresh liquid milk and cream to the top seven retailers.

Over 2,500 daily deliveries are made directly to stores nationwide and Arla brands can be found across the dairy category. As well as the leader of the butter, spreads and margarine sector, and a major supplier of other added value products including flavoured milk and cheese, Arla continues to build working relationships with Arla Foods Milk Partnership, a unique group of dairy farmers, which supplies around 90 per cent of Arla's total milk requirements.

Behind this leading business is a team of circa 2,800 people across the UK located at our dairies, distribution centres and head office.