Arla UK decreases June milk price

Arla Foods is to decrease its UK June milk price by 1c/kg, the co-operative has announced.

Arla increased its April milk price by 1.5c/kg and held that price into May, now the on account price is being reduced for June, coming into effect from May 25.

When this reduction is applied to the UK standard litre, the impact will be a reduction of 0.84p/L taking it to 24.99p/L.

Ash Amirahmadi, Arla UK’s Head of Milk and Member Services, said that following a brief market upturn, which Arla was able to reflect on its milk price, the commodity markets continue their negative trend.

“Whilst we continue to do everything possible to minimise the impact, unfortunately, we have not been able to buck the market.

“The entire global dairy industry has been affected by these market forces,” he said.

Last month after deciding to hold the co-ops May milk price Amirahmadi said that commodity markets were continuing to show a negative trend and that trading conditions were difficult.

The co-op recently said that 2014 was a complex year for Arla. It said that the farmer-owned company achieved one of its best results ever in a market impacted by volatility and international politics.

A strong first half of the year produced record-high earnings, but the global market shifted in the second half, reducing the farmer milk price significantly, it said.

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