Confirmation of the Arla Foods amba August milk price
The Arla Foods amba on-account price will reduce by one eurocent per kg (0.8 pence when applied to the UK standard litre), with effect from 3 August 2015, taking the standard litre price to 23.01 pence.
Commenting on the reduction, Ash Amirahmadi, head of UK milk and member services, said:
“The downward price trend is continuing across markets globally, with the latest GDT auction down significantly by 10.7 per cent and this has put further considerable pressure on the markets. The situation is not helped by high milk production throughout the world, while demand from China and Russia, in particular, continues to be low. These global developments are impacting all dairy markets throughout the world.
“While we are doing everything we can to further reduce our costs, grow our branded portfolio, launch the Arla brand into dairy, promote our farmer-owned status, and work independently with each of our customers to find solutions to deal with market volatility, we simply cannot influence the macro factors.”
Arla Foods amba farmer board director, Jonathan Ovens, added: “As a farmer-owned business, with 3,000 British dairy farmer owners, we are painfully aware of the impact that the downturn in the markets is having at farm level and this cannot be ignored.
“It’s not a lack of effort or determination on Arla’s part; we are doing everything possible to help our owners to navigate through this increasingly tough situation, in the best possible way.”
The milk price, for the small number of Arla farmers on a direct supply contract, will reduce by 0.85 pence per litre, from 1 September 2015.
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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 has a turnover of £2.3 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.