Arla Foods is raising its milk price to owners by a further half a eurocent per kilogramme from 1 March.
When the increase in the on-account price is applied to the UK standard litre, it equates to an upward movement of 0.38 pence, taking the liquid* price to 27.45 pence per litre and the manufacturing* price to 28.55 pence per litre.
Commenting on the decision, Arla Foods amba board director, Jonathan Ovens, said: “Milk production in the EU is picking up in line with seasonal trends, although it is still significantly below 2016 volume.
“Milk production in Oceania and South America continues to decline but milk intake in the US is growing by around two per cent. Markets appear to be stable with continuing good demand, particularly in Asia.
“This is our seventh consecutive price increase and we are the first major dairy company in the UK to increase our price for March. I’m confident that this will be well received by our farmer owners.”
*Liquid and manufacturing price based on every other day collection, top quality, one million litres
Liquid price based on 4% butterfat, 3.3% protein
Manufacturing price based on 4.2% butterfat, 3.4% protein
Arla Foods is a global dairy company and co-operative owned by 12,000 dairy farmers with circa 2,700 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 a total of 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® with a turnover of €2.2 billion. As well as being a leading supplier of fresh milk, number one in 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.