Arla maintains milk price but new exchange rate kicks in

Published 24 December 15

Arla Foods has announced its members’ Amba price will remain unchanged for another month. However, with a new quarterly exchange rate coming in, UK members will receive a 0.43ppl reduction.

As previously reported, the Arla Amba price is converted into sterling using a 24-month rolling average exchange rate, updated quarterly. In October 2015, this mechanism saw Sterling average €1.25. The latest quarterly update, to December, takes it to €1.28, a 2% movement leading to a 2% (0.43ppl) reduction in the Arla UK price.

The chart below shows how far the exchange rate has moved over the last two years. Arla UK farmers will be hoping the Euro strengthens over the coming months to limit the impact as the 24-month rolling average kicks in.

Arla exchange rate mechanism