ARLA has dropped its milk price for UK farmers by 0.84ppl to 24.99ppl from May 25 and blamed ongoing dairy trade volatility. The NFU claimed the drop was another major setback for UK dairying, but maintained the long term picture was bright. The one euro cent drop by Arla followed an increase in April, but Ash Amirahmadi, Arla UK’s head of milk and member services, said market fundamentals were working against them. He said: “Following a brief market upturn, which we were able to reflect in our milk price, the commodity markets continue their negative trend. Whilst we continue to do everything possible to minimise the impact, unfortunately, we have not been able to buck the market.

The entire global dairy industry has been affected by these market forces. “NFU dairy board chairman Rob Harrison, who supplies Arla, said the reduction had come at a difficult time for many. Read more.

Prior to this article, in August 2014 this was published, setting the tone for worse to come…

ARLA SLASHES MILK PRICE BY 1.2PPL AND BLAMES RUSSIAN TRADE BAN

Arla has slashed another 1.2ppl off its UK farmgate price and said the Russian import ban on western products was partly behind the move.

Arla Foods amba announced that its owner on-account price would fall by 1.5 euro cents per kg with effect from September 1. When converted, this equates to the 1.2ppl drop seen for UK farmers and means the standard price is 30.38ppl. Ash Amirahmadi, Arla UK head of milk and member services, said: “Global commodity markets have fallen sharply over recent months – a development that has affected dairy companies, including Arla. In addition, Russia has announced a ban on agricultural import from certain states, including the EU. Read more.