Arla Foods UK plc has announced a further rise in the milk price paid to members of its dedicated milk supply group, Arla Foods Milk Partnership (AFMP). From 1 June 2007 the AFMP standard litre price will increase by 0.4p per litre to 19.8ppl.
Arla Foods Group Director of Milk Procurement, Peter Walker, said that the increase followed a wide-ranging review across key elements of the company's pricing arrangements: "Commodity returns have continued to strengthen and, although we came into the current half year with a deficit, the improved butter and powder prices mean that the deficit will have been cleared by the end of May" said Mr Walker.
"From 1 June 2007 our milk price will be at the top end of industry returns. In addition, as a result of our relationship with Asda and Tesco, from August around 60 per cent of our members will receive a significant further premium over the Arla base price."
Jonathan Ovens, AFMP Chairman comments: "The Partnership is in a strong position and, working closely with the Arla Foods UK team, following the acquisition by Arla amba, we can expect to benefit from further opportunities that will arise in the future.
"I am encouraged by the progress made with the on-farm cost recovery, where Arla achieved a significantly greater increase than all other processors. We will continue to look for further opportunities to improve the position for all of our members."