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Arla Drops June Milk Price

24 May 2016

EU - Arla Foods is reducing its amba on-account price, with effect from 1 June 2016, by 1.3 eurocents per kg.

For Arla's UK suppliers it equates to a reduction of one pence, taking the UK standard litre to 19.12 pence.

Arla said the fall was because the market continues to be impacted by the global imbalance between milk supply and demand. Currently, commodity stocks are high and the market is extremely competitive which is continuing to generate further downward pressure on prices.

Arla Foods amba Farmer Board Director, Johnnie Russell, commented: “Recent data suggests that the global growth in milk production is levelling off, which may lead to volumes stabilising later in the year. However, it is too early to predict whether this trend will continue over the coming months.

“Arla will continue to maximise the returns from the marketplace and provide a secure home for every litre of owners’ milk at one Arla price. The business is continuing to grow sales of branded products, through increased marketing, as well as processing milk from our farmer owners into products for the foodservice sector.”

TheCattleSite News Desk

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