Arla Foods amba’s on account price for conventional milk price will remain the same for April 2019. However, this month it will be negatively impacted by a quarterly adjustment in the currency smoothing mechanism of 0.01pence per litre from 1 April 2019. When applied to the UK manufacturing price this will reduce Arla’s pence per litre to 30.23 pence for farmer owners.
Arla Foods amba board director, and farmer owner, Johnnie Russell, said: “Being farmer owners in a European dairy cooperative, with global reach, is having real benefits for farmers in the UK, which are reflected in the milk price. European milk volumes in most major countries are in line or slightly higher than this time last year and, as a result, markets have been quiet and overall global prices remain relatively stable.There has been some weakening in fat prices. Global Protein prices have continued to recover, offsetting the impacts of the lower fat prices and Cheese prices have stabilised following recent increases. This has meant that overall despite the current uncertainties in the UK market, we have been able to hold our price relatively stable.”
Graham Wilkinson, Agriculture director at Arla continues: "The long term vision of Arla and it’s farmer owners to drive a sustainable business from farm to consumer, continues to help us grow the business and drive the best return for our owners milk. The recent launch of our Carbon Net Zero ambition, the continued success of our Arla UK 360 programme, as well as the launch of innovative new products such as Anchor Softest, are just some of the ways that we have delivered this month, in spite of a challenging external UK market.It is by working together that we are able to grow and prosper. "
Arla farmers are paid on constituents via a manufacturing schedule. For ease of comparison, the liquid price is 29.06 pence per litre based on 4% fat and 3.3% protein.The on-account price for organic milk will reduce to 41.98 pence per litre, including the negative impacted of the quarterly adjustment in the currency smoothing mechanism.The adjustment for organic farmers who have decided to use EU granted exceptions to use non-organic forage will remain as a deduction of 3€c/kg. Manufacturing price based on every other day collection, top quality, one million litres,4.2% butterfat, 3.4% protein.Arla Foods is a global dairy company and co-operative owned by 10,300 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 €2.9 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.
