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Confirmation of the Arla Foods milk price

Press Release   •   May 23, 2016 12:01 BST

The Arla Foods amba on-account price will reduce, with effect from 1 June 2016, by 1.3 eurocents per kg.

When applied to the UK standard litre it equates to a reduction of one pence, taking the UK standard litre to 19.12 pence.

The market continues to be impacted by the global imbalance between milk supply and demand. Currently, commodity stocks are high and the market is extremely competitive which is continuing to generate further downward pressure on prices.

Arla Foods amba Farmer Board Director, Johnnie Russell, commented: “Recent data suggests that the global growth in milk production is levelling off, which may lead to volumes stabilising later in the year. However, it is too early to predict whether this trend will continue over the coming months.

“Arla will continue to maximise the returns from the marketplace and provide a secure home for every litre of owners’ milk at one Arla price. The business is continuing to grow sales of branded products, through increased marketing, as well as processing milk from our farmer owners into products for the foodservice sector.”

Arla Foods is a global dairy company and co-operative owned by 12,700 dairy farmers with 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 fifth largest dairy company and largest supplier of organic dairy products.  Arla has 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 a leading supplier of fresh 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.