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.”