Following an unprecedented two weeks of activity within the industry, Arla Foods is able to confirm that having recovered money from its customers, and by increasing its non-aligned premium, it will no longer have to implement the planned August reduction in its milk price.
Earlier this month the company announced that it would need to reduce the price it pays to supplying dairy farmers for their milk, from next month, due to a fall in market returns. However, following discussions with customers and the elected representatives of Arla Foods Milk Partnership, it has increased its Cravendale premium and secured additional money totalling two pence per litre. For members who are not aligned to a retailer this means their standard litre price has been maintained at 27 pence.
Ash Amirahmadi, Arla’s head of milk procurement said: “I am pleased to confirm that Arla is in a position to maintain a standard litre price of 27 pence for non-aligned members of Arla Foods Milk Partnership. We have agreed a transparent reconciliation method with our customers and our supplying farmers to demonstrate that all of the money recovered from the marketplace has been paid out in full.”
Arla Foods UK plc is home to some of the UK’s leading dairy brands including Cravendale, Lurpak and Anchor. Processing approximately two billion litres of milk a year Arla continues to be one of the UK’s leading dairy companies and a supplier of fresh liquid milk and cream to the top seven retailers.
Over 2,500 daily deliveries are made directly to stores nationwide and Arla brands can be found across the dairy category. As well as the leader of the butter, spreads and margarine sector, and a major supplier of other added value products including flavoured milk and cheese, Arla continues to build working relationships with Arla Foods Milk Partnership, a unique group of dairy farmers, which supplies around 90 per cent of Arla's total milk requirements.
Behind this leading business is a team of circa 2,800 people across the UK located at our dairies, distribution centres and head office.