Milk price for March 2023 will decrease by 3.52 ppl (4.0 €c/kg) for conventional and organic milk

Arla Foods amba board director, and Arla farmer, Arthur Fearnall, said: “Consumer demand continues to fall as a result of consistently high inflation and the uncertain economic outlook. Additional milk volumes are driving a continued decrease in commodity prices and the prices for EU and world commodities are now, broadly, on par. Consumer consumption for organic is also continuing to react to the high inflationary landscape. The outlook is negative.”

Paul Savage, Agriculture Director for Arla UK continues: “As the cost of living crisis continues consumers are buying less and, as a result, we have seen a reduction in European dairy consumption by approximately 5%. The economic outlook remains uncertain and while - in recent weeks - we have seen the first signs of stabilisation in the Global Dairy Trade, we are still facing a challenging commodity market, especially as milk volumes continue to increase overall. As a dairy cooperative, we remain committed to delivering the most value to our farmer owners milk.”