Arla Foods amba is increasing its on account price to Arla Milk Link (AML) members by 0.77ppl, as a result of improvements in business performance, taking the AML standard litre to 32.31 pence* from 2 September 2013.
In addition, Arla Milk Link is increasing its organic premium by a further 2.35ppl, taking the AML organic standard litre price to 40 pence.
Arla is working with AML’s farmer representatives to develop a more simple and transparent milk pricing schedule, designed to achieve closer alignment with amba’s pricing schedules, and more closely reflect Arla’s policy for the standard litre price to be achievable by the majority of AML members.
The first action is to remove elements from the pricing schedule which are difficult for farmers to achieve, the effect of this is a reduction of 0.3 pence from the standard litre price although this has no impact on the actual cash received by members.
Note to editors
*The net effect, including the 0.77ppl amba increase and the removal of the 0.3ppl
The removal of the 0.3ppl affects circa 20 of the 1,600 members who will continue to receive the payment if they continue to qualify, until 31 December 2013.
Arla Foods UK plc is home to some of the UK’s leading dairy brands including Cravendale, Lurpak, Tickler and Anchor. Processing approximately 3.2 billion litres of milk a year and with a turnover of approximatey £2bn Arla is the UK’s largest dairy company.
Over 4,000 daily deliveries are made to stores and regional distribution centres nationwide, Arla's brands can be found across the dairy category and the company has a 26 per cent share of the GB milk pool. Behind this leading business is a team of circa 4,000 people across the UK located at our dairies, distribution centres and head office.