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On account payment cut by 2.33 øre per kg

Press Release   •  Oct 04, 2002 15:33 CEST

Arla Foods' Supervisory Board this week decided to cut the market supplement from 9.5% to 8.5% of the base price.
As the Danish Dairy Board’s payment model was increased by 0.2 (dk) øre on September 30, the decision means an overall reduction of the on account price from 243.00 øre to 240.67 øre per kg. standard milk from September 30.
The market supplement has been determined on the basis of the operating budget for the coming year.

The Swedish on account price is unchanged at 285 Swedish øre per kg.
Including various supplements and based on current exchange rates, the on account price in the two countries is roughly in line.

The budget for the coming year has been significantly affected by declining world market prices for bulk products such as skimmed milk powder. During 2002, world prices for milk have fallen between 7% and 30%.

Uncertainties relating to some of Arla Foods’ key currencies USD and GBP have also had an impact.