26 February 2018

1 minute read

Europe

Commenting on the decision to reduce the price, Arla Foods amba board director, Johnnie Russell, said: "While this will be unwelcome news for our farmer owners, the challenge that we face is that our price, in common with those or our competitors, has been impacted by the recent dramatic falls in the commodity markets from the highs of last autumn."

While last year’s increases were driven by fat, the long-term decline in the value of protein since the start of 2017 has had a significant impact. Protein prices are now at a historical low with little prospect of recovery, due to the large stocks held by the EU.

Cheese prices have begun to recover but are still below the levels of a year ago. Butter has also begun to increase but is still only slightly ahead of last year’s prices. Market recovery is from a low level and the overall price of fat and protein combined is still lower than this time last year.

TheCattleSite News Desk