Press release

​Arla Foods amba’s January milk price

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The Arla on-account price will reduce by 2.5 eurocents per kg, with effect from 5 January 2015.

The combined impact of the on-account price and 13th payment changes takes the quoted UK standard litre to 24.81ppl, a total decrease of 2.03ppl.

Commenting on the reduction, Ash Amirahmadi, Arla’s UK head of milk and member services, said: “Global supply and demand are still out of balance which is continuing to create downward pressure. The knock on impact of weak international prices on the European markets has affected Arla’s business performance, as well as that of the entire dairy industry in Europe.

“The weak, but positive result of the recent GDT auction is welcome, however it is too early to conclude that there is any change in underlying market conditions.”

Ends

Notes to editors

Arla amba milk price detail

The 2.5 eurocents reduction, when applied to the UK standard litre, will result in a decrease of 2.09 pence, taking the UK on-account price from 26.28ppl to 24.19ppl. This decrease includes a 0.08ppl negative impact from the quarterly exchange rate mechanism.

In January, the quoted 13th payment will be rebased to reflect the 2015 Arla amba forecast. The 13th payment continues to be based on the recently approved new retainment policy. This forecasted 13th payment is 0.62ppl, an increase of 0.06ppl, compared to the 2014-based estimate.

AMCo changes

The butterfat reconciliation has been reduced from 0.45ppl to 0.01ppl on all milk supplied with effect from 1 January 2015.

In addition, the Emerald Debt Co board has decided to implement a payment holiday of three months for 0.5ppl of the levy. If a member’s levy is currently 0.5ppl it will reduce to zero during the months of January, February and March 2015. For members whose levy is currently 1ppl, the loan will reduce to 0.5ppl during the months of January, February and March 2015. The levy will be re-introduced on 1 April 2015.

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 processes 3.5 billion litres of milk a year and has a turnover of £2.2 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.

Press contact

Primary

Arla Foods UK Press Office

Arla UK (media queries only, no new business or sponsorship requests)

felicity.callaghan@arlafoods.com 07966136112