Arla Foods amba’s January 2015 milk price
The Arla on-account price will reduce by 2.5 eurocents per kg, with effect from 5 January 2015.
The Arla on-account price will reduce by 2.5 eurocents per kg, with effect from 5 January 2015.
The combined impact of the on-account price and 13th payment changes takes the quoted UK standard litre to 24.81ppl, a total decrease of 2.03ppl.
Commenting on the reduction, Ash Amirahmadi. Arla’s UK head of milk and member services, said: “Global supply and demand are still out of balance which is continuing to create downward pressure. The knock on impact of weak international prices on the European markets has affected Arla’s business performance, as well as that of the entire dairy industry in Europe.
“The weak, but positive result of the recent GDT auction is welcome, however it is too early to conclude that there is any change in underlying market conditions.”
Story updated with reaction from the NFU..
NFU reaction
Just two days before Christmas, dairy farmers supplying Arla have been hit with another price cut. This is a yet another severe cut which will be devastating for dairy farming families over the festive period and will severely affect confidence in the industry.
NFU President Meurig Raymond said: “I feel desperate for those 3,000 dairy farmers supplying Arla who’ve been delivered the worst possible Christmas present. It couldn’t have come at a worse time and this latest reduction will continue to place huge pressure on cash flows for these farmers in the months ahead. It is vital that we don’t see this trend continue through other processors’ February price announcements.
“For the first time producer numbers have dipped under 10,000 with 60 going out of business in November alone. We will continue to put pressure on Government, retailers and the processors with the aim of trying to rebuild an economically sustainable dairy industry. We cannot emphasise enough how awful this downward spiral has been for the dairy industry in the UK.”
NFU dairy board chairman Rob Harrison said: “Today’s announcement from Arla is yet another body blow for the industry and will further devastate dairy’s bottom line.
“But despite this news, dairy farmers across the country, including myself, will continue to provide the nation’s milk – working 52 weeks a year, without a break, and yes, even on Christmas day we’ll be up and in the parlour at 4am before being able to spend some precious time with our children and families.
“All we ask is that the public continues to buy British dairy products over the festive period, including British cheese, look out for the Red Tractor logo and continue to back British farming.”
