Archive: Arla to reduce UK milk price by 1.67ppl

Published 25 September 14

This page has been archived and no longer updated. more info

The milk price paid to Arla Foods UK members will be cut by 1.67ppl, with effect from 29 September. The reduction is a result of a €2 cents per kg cut to the Arla Foods amba on-account price, as well as the quarterly adjustment of the currency exchange rate in its pricing mechanism. The continued strength of global milk production, combined with the Russian ban on dairy products and a slowdown in demand growth from China, has been adding downward pressure to commodity markets.

In addition, Arla’s quarterly reforecast has led to a fall in its forecasted supplementary (13th) payment, with the co-operative currently anticipating this to be 0.65ppl for 2014. The decrease is due a fall in turnover as a result of reduced commodity selling prices, although the final figure will be confirmed in February 2015.