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Arla Shifts Milk Price Downwards Once Again

22 April 2016

UK - The Arla Foods amba on-account price will reduce, with effect from 1 May 2016, by one eurocent per kg.

When applied to the UK standard litre it equates to a reduction of 0.75 pence per litre, taking the UK standard litre to 20.12 pence.

The imbalance between global supply and demand continues to significantly impact the market. In addition, cheese stocks remain high. These, coupled with the very competitive market environment, have generated a further downward pressure on prices.

Arla Foods amba Farmer Board Director, Johnnie Russell, commented: “The continuing decline of milk prices is of deep concern to all involved in the dairy industry and the entire world market is at an unsustainably low level right now.

“Arla is doing all it can to mitigate the downturn of the markets and is working hard to move the extra milk volume from our farmer owners into branded sales and foodservice. However, even those areas are also now being affected by the global imbalance between supply and demand.”

Arla is also informing its farmers supplying milk on a direct contract of a 0.9ppl reduction in the milk price taking it to 15.1ppl from 1 June 2016.

TheCattleSite News Desk

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