Arla to cut milk price to farmers in January

Arla dairy farmers will face a milk price cut in the new year.

Arla will lower the price it pays its farmers for milk in January. Picture by Mark Bikerdike.

The processor has announced that its manufacturing price will fall by 1.33 pence per litre (ppl), to 30.24ppl, starting on January 1.

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Johnnie Russell, board director of Arla Foods amba, said: “Recent commodity price declines have lowered returns in the market, particularly in fat based products, and, with global milk volumes remaining up on last year, this has resulted in reduced market prices overall.

“While we are not immune from the impact of global market pressures, it is down to our strength as a farmer-owned cooperative and the growth of our brands that overall this year we have delivered the industry’s best averaged milk price.”

Arla also announced that its on-account price for organic milk will increase by 0.02p, taking it to 44.45ppl.