UK dairy processor ‘draws line in the sand’ on milk price

Arla Foods in the UK has announced that it is holding the on-account milk price for November.

However, due to the new retainment policy, the payment 13 will drop slightly (reduced to 0.57ppl) resulting in a milk price of 28.47ppl. Arla have stated that ‘the market environment continues to be challenging with on-going pressure on prices on most markets’ suggesting the market may not have stabilised yet.

Commenting on Arla holding its milk price during November, Ash Amirahmadi, Arla UK’s head of milk and member services said: “Arla maintaining its milk price during November draws a line in the sand and creates much needed stability for our owners. However, the market environment continues to be challenging with ongoing pressure on prices on most markets.”

Arla Foods UK is the largest dairy company in the country and is home to leading dairy brands Anchor, Cravendale, and Lactofree. It processes 3.5 billion litres of milk a year and has a turnover of £2.2 billion. As well as being number one in fresh liquid milk, butter, spreads and cream, Arla is the UK’s largest cheese manufacturer.

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