Arla Foods to maintain milk price
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.”
