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Arla Foods amba confirms hold for May milk price

Press release   •   Apr 24, 2019 12:06 BST

Arla Foods amba’s on account price for conventional and organic milk will remain the same for May 2019. This hold meansMay’s price for the UK manufacturing litre for conventional milk will continue at 30.23 pence and the organic price per litre remains 41.98 pence, for Arla’s farmer owners.

Arla Foods amba board director, and farmer owner, Johnnie Russell, said: “Overall, European milk volumes are stable compared to last year. While there has been significant volume growth in some markets including the UK, we continue to see the benefits of being owners of a business with global reach within our milk price.The organic market continues to experience pressure in some countries, however, overall it is currently stable. European markets are unusually quiet overall with Yellow cheese prices havingreduced in the last month and butter prices remaining stable. We are now seeing a world commodity market where prices are higher than current European prices. This should be good news for export opportunities across our cooperative.”

Graham Wilkinson, UK Agriculture director at Arla continues:“Delivering a sustainable milk price is our main purpose and, as a farmer-owned business, our member democracy is important to our success. With Farmer owners in seven European countries, it is our democracy that enables farmer owners to make all decisions together and which makes Arla one of the strongest players in the international dairy arena. The recent round of UK spring farmer meetings has demonstrated the strength of our democracy in action and we continue our journey to securing a sustainable milk price for the future of our farmer owners’ businesses.”

  • Arla farmers are paid on constituents via a manufacturing schedule. For ease of comparison, the liquid price is 29.06 pence per litre based on 4% fat and 3.3% protein.
  • The adjustment for organic farmers who have decided to use EU granted exceptions to use non-organic forage will remain as a deduction of 3€c/kg.
  • Manufacturing price based on every other day collection, top quality, one million litres,4.2% butterfat, 3.4% protein.
  • Arla Foods is a global dairy company and cooperative owned by 10,300 dairy farmers with circa 2,500 of whom are British.

    Dating back to 1881, Arla’s purpose is to secure the highest value for its farmers’ milk, while creating opportunities for their growth. With production facilities in 11 countries and sales offices in a further 30, Arla is the world’s fifth largest dairy company and largest supplier of organic dairy products. Arla has a total of more than 18,000 colleagues and its products are sold under the well-known brands Arla®, Lurpak® and Castello® in more than 100 countries.

    Arla Foods UK is the largest dairy company in the country and is home to leading dairy brands Anchor®, Arla Cravendale®, and Arla Lactofree® with a turnover of €2.9 billion. The UK is largest market within the Europe Zone, contributing 35% of the zone’s turnover and also comprises 25% of the Group revenue.

    As well as being a leading supplier of fresh milk, number one in butter, spreads and cream, Arla is the UK’s largest cheese manufacturer. It has also built the world’s largest fresh milk facility located at Aylesbury that later this year will become the first net zero carbon site of its kind. The UK business has a team of approximately 3,500 colleagues located at its dairies, creameries, distribution centres and head office.