Arla Foods is decreasing its milk price to owners by 0.42 pence per litre from 1 April.
The Arla Foods on-account price has decreased by one eurocent per litre which equates to a reduction of 0.79 pence per manufacturing litre. However, a positive currency impact of 0.37ppl from 1 April, mitigates the full impact of the reduction.
Commenting on the decision, Arla Foods amba board director, Johnnie Russell, said: “We are extremely disappointed to be in a position of having to reduce our milk price to our owners, after seven consecutive increases. During that period, we have delivered an additional £76 million in milk price increases to our owners since September 2016. The reduction in our April price is unwelcome news.
“Over recent weeks, the reduction in commodity prices has impacted yellow cheese, protein and spot market prices and this is putting pressure on the European market in particular. International value added markets on the other hand seem to be more stable.”
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*Manufacturing price based on every other day collection, top quality, one million litres,4.2% butterfat, 3.4% protein
Source: MilkPrices.com
Arla Foods is a global dairy company and co-operative owned by 12,000 dairy farmers with circa 2,500 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®, Arla Cravendale®, and Arla Lactofree® with a turnover of €2.2 billion. The UK is largest market within the Europe Zone, contributing 35% of the zone’s turnover and also comprises 25% of the Group revenue.
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 that later this year will become the first net zero carbon site of its kind. The UK business has a team of approximately 3,500 colleagues located at its dairies, creameries, distribution centres and head office.
