UK - Arla Foods amba is maintaining its milk price through January 2016. However, January also sees a new quarter’s (October to December) average exchange rate being introduced to the pricing mechanism.
The introduction of this quarter’s exchange rate into the mechanism has a 0.43 pence negative impact on the milk price, taking the UK standard litre to 22.61 pence.
Ash Amirahmadi, head of UK milk and member services, said: ”Global milk production is still ahead of demand. On the supply side, USA and New Zealand milk production continues to weaken, while volumes in the northern part of Europe continue to increase.
“On the demand side, retail milk markets in Northern Europe have stabilised following improvements in last quarter, as a result of retailers across Europe increasing the price they pay for milk.
“Cheese markets remain under pressure, as a result of extra milk production, which has led to increased stocks, while bulk ingredients markets have stabilised over the past month, but the market remains fragile.”
TheCattleSite News Desk