The UK’s largest dairy company Arla, has slashed its January milk price by €2.5c/kg
The company says the combined impact of the on-account price and payment changes takes the quoted UK standard litre to 24.81p/L, a total decrease of 2.03p/L.
Commenting on the reduction, Ash Amirahmadi, Arla’s UK head of milk and member services, said global supply and demand are still out of balance which is continuing to create downward pressure.
“The knock on impact of weak international prices on the European markets has affected Arla’s business performance, as well as that of the entire dairy industry in Europe.
“The weak, but positive result of the recent GDT auction is welcome, however it is too early to conclude that there is any change in underlying market conditions.”
Arla Foods is a global dairy company and co-operative owned by 13,500 dairy farmers circa 3,000 of whom are British.
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.
It has also built the world’s largest fresh milk facility located at Aylesbury and has plans for it to be the first zero carbon site of its kind. The UK business has a team of approximately 4,000 colleagues located at its dairies, distribution centres and head office.