The Arla Foods amba on-account price will reduce, with effect from 1 April, by one eurocent per kg. When applied to the UK standard litre it equates to a reduction of 0.75 pence.
April also sees a new quarter’s (January – March) average exchange rate being introduced to the pricing mechanism and this has a 0.19 pence per litre negative impact on the milk price.
The reduction, coupled with the impact of exchange rates, reduces the UK standard litre price for conventional milk down by 0.94 pence taking it to 20.87 pence.
The continued growth in milk production across Europe continues to have an impact on the imbalance between conventional milk supply and demand. This is continuing to put pressure on commodity and cheese markets which is having a knock-on effect across other markets.
Arla Foods amba Farmer Board Director, Jonathan Ovens, commented: “The milk price is definitely not at a level that anyone wants it to be, but the business is continuing to work hard to mitigate the negative effects of the hard-pressed global dairy market.
“We believe Arla has the right strategy to get through this, although the current situation is extreme for both Arla and everyone else in the global dairy market.”
