Confirmation of the Arla Foods milk price
The Arla Foods amba on-account price will reduce, with effect from 1 May 2016, by one eurocent per kg.
When applied to the UK standard litre it equates to a reduction of 0.75 pence per litre, taking the UK standard litre to 20.12 pence.
The imbalance between global supply and demand continues to significantly impact the market. In addition, cheese stocks remain high. These, coupled with the very competitive market environment, have generated a further downward pressure on prices.
Arla Foods amba Farmer Board Director, Johnnie Russell, commented: “The continuing decline of milk prices is of deep concern to all involved in the dairy industry and the entire world market is at an unsustainably low level right now.
“Arla is doing all it can to mitigate the downturn of the markets and is working hard to move the extra milk volume from our farmer owners into branded sales and foodservice. However, even those areas are also now being affected by the global imbalance between supply and demand.”
Arla is also informing its farmers supplying milk on a direct contract of a 0.9ppl reduction in the milk price taking it to 15.1ppl from 1 June 2016.
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. It has a turnover of £2.3 billion. As well as being number one in fresh liquid milk and cream, butter, and spreads, 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.