Press release -
Arla Foods amba to increase milk price
Arla Foods amba is increasing its on-account price by 0.5 eurocents per kg, with effect from 28 September 2015. When this is applied to the UK standard litre it gives a 0.38 pence positive impact.
October sees a new quarter’s (July to September) average exchange rate being introduced to the pricing mechanism. The introduction of this quarter’s exchange rate into the mechanism has a 0.35 pence negative impact on the milk price.
These two elements generate an overall 0.03 pence uplift in the milk price, taking the UK standard litre to 23.04 pence.
Commenting on the decision, Ash Amirahmadi, head of UK milkand member services, said: ”As a result of improvements through the supply chain, including recent developments in GDT auction prices, as well as initiatives from a number of our retail customers across Europe, our revenue has been positively impacted which is contributing to the first increase in Arla’s milk price for over six months.
”While this is positive, it is too early to confirm that the global market trend has reversed.”
Jonathan Ovens, Arla Foods amba board director, added: ”We launched the farmer-owned marque last month and are delighted at the response we have received. Consumers can now easily identify and trust that when they buy dairy products, displaying the marque, they are re-sponsibly sourced from a farmer-owned business where all the profits go back to our owners.
“The marque has launched in stores across the UK and will be rolled out nationally on Arla branded and many retailer own label dairy products, over the next couple of months.”
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Arla Foods is a global dairy company and co-operative owned by 12,700 dairy farmers circa 3,000 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 sixth 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, Cravendale, and Lactofree. It has a turnover of £2.3 billion. As well as being number one in fresh liquid milk, 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 and has plans for it to be the first zero carbon site of its kind. The UK business has a team of approximately 3,500 colleagues located at its dairies, distribution centres and head office.
