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Arla Foods amba confirms hold for July milk price

Press release   •   Jun 24, 2019 13:36 BST

Arla Foods amba’s on account price for conventional and organic milk for July 2019 will remain unchanged. However, this month it will be negatively impacted by a slight quarterly currency smoothing adjustment of 0.01 pence per litre. When applied to the UK manufacturing price this will reduce Arla’s pence per litre for conventional milk to 30.22 pence and 41.97 pence per litre for organic milk from 1 July for Arla’s farmer owners.

Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: “It is being part of a strong European cooperative that has enabled us to hold our conventional milk price for the sixth month in a row. European milk volumes are starting to increase against the same period last year, however, we are still seeing significant regional differences in growth, with UK and Ireland showing strong increases versus last year. Overall, the market, including organic, remains stable with cheese prices falling slightly in recent weeks and commodity markets continuing this year’s trends which have seen fat prices weakening further and protein prices increasing, albeit slower than previously.”

Graham Wilkinson, UK Agriculture director at Arla continues: “A vital part to Arla’s continued success is ensuring we continue to engage directly with consumers to share our farmer owned story and educate people on the benefits of dairy and where it comes from. This year as part of Open Farm Sunday once again Arla farmers did not disappoint with over 40 Arla farmer owners welcoming more than 70,000 people through their gates which is a tremendous achievement. It’s also days like this that highlight the importance of increasing our dialogue with consumers around the sustainability agenda, with dairy farming very much as part of the solution and championing foods that deliver the biggest nutritional benefits for the least environmental impact, which is where dairy scores well”

  • Arla farmers are paid on constituents via a manufacturing schedule. For ease of comparison, the liquid price is 29.05 pence per litre based on 4% fat and 3.3% protein.
  • Manufacturing price based on every other day collection, top quality, one million litres,4.2% butterfat, 3.4% protein.