Arla cuts milk price as ‘supply and demand remains out of balance’

Arla Foods has cut its price for February supplies of milk in the UK by 0.8p/L, bringing the UK standard litre to 21.81p/L (28.87c/L).

The change is to come into effect from February 1.

Commenting on the reduction, Ash Amirahmadi, head of UK Milk and Member Services, said that global supply and demand continues to be out of balance.

“The emerging dynamic is the significant growth of milk supply in Europe, particularly driven by the Netherlands and Ireland.

“This, combined with the seasonal dip in revenue post-Christmas, is impacting the entire dairy industry and has placed further downward pressure on Arla’s on-account price.”

Amirahmadi said that Arla is doing everything it can to further reduce its costs, not just in the UK but throughout its global business.

“Meanwhile, in the UK we are continuing to grow our branded portfolio and only this month we launched BOB, another Arla branded innovative new product, into the dairy category.”

Despite all of our efforts, we simply cannot buck global industry trends.

Arla Foods amba Farmer Board Director, Johnnie Russell, added that as a farmer-owned business, with circa 3,000 British dairy farmer owners, Arla is extremely aware of the impact that this downturn in the markets is having at farm level.

“We have seen another drop in the GDT and are doing everything we can to help our farmer owners navigate through the uncertainty within the markets.”

Arla Foods is a global dairy company and co-operative owned by 12,700 dairy farmers with circa 3,000 of whom are British.

It has production facilities in 11 countries and sales offices in a further 30 making it the world’s fifth largest dairy company and largest supplier of organic dairy products.

Comments

Please be considerate of others when commenting. All comments posted are subject to our commenting policy. Comments violating this policy will be removed without notice.