Arla Foods is raising its milk price to owners by a further two eurocents per kilogramme from 1 January.
When the increase in the on-account price is applied to the UK standard litre, the increase equates to an upward movement of 1.51 pence.
January also sees a new quarter’s (October to December) average exchange rate introduced to the pricing mechanism, resulting in a 0.17 pence per litre increase, taking Arla’s UK standard litre to 26.31 pence.
Commenting on the decision, Arla Foods amba board director, Jonathan Ovens, said: “Markets continue to be strong, due to the reduction in global milk production coupled with ongoing strong demand.
“In Europe, the markets for added value products continue to strengthen, while spot prices are weakening. The organic market in Europe remains strong.
“This is the fifth increase in Arla’s milk price in as many months, realising a 31 per cent uplift in the price since 1 September.”
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® with a turnover of €2.9 billion. As well as being a leading supplier of fresh milk, number one in 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 3,500 colleagues located at its dairies, distribution centres and head office.
