Arla Foods is cutting its owner on-account price by €1.25 cents per kg, with effect from August 4, 2014.

When applied through the pricing mechanism, this reduction equates to an overall £0.94 pence reduction in Arla’s UK standard litre price, taking the standard litre to 31.58ppL. The adjustment is made up of a decrease of 0.98ppl in the on-account price and a 0.04ppl increase in the 13th payment.

Commenting on the reduction, Ash Amirahmadi, Arla UK’s head of milk and member services said:  “This milk price reduction is necessary due to a further downward movement in global and European prices, which are affecting the entire industry.”