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    Dairy

    Arla Foods amba to increase milk price

    chrislyddonBy chrislyddonSeptember 24, 20152 Mins Read
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    Arla Foods amba is increasing its on-account price by 0.5 eurocents per kg, with effect from 28 September 2015. When this is applied to the UK standard litre it gives a 0.38 pence positive impact.

    October sees a new quarter’s (July to September) average exchange rate being introduced to the pricing mechanism. The introduction of this quarter’s exchange rate into the mechanism has a 0.35 pence negative impact on the milk price.

    These two elements generate an overall 0.03 pence uplift in the milk price, taking the UK standard litre to 23.04 pence.

    Commenting on the decision, Ash Amirahmadi, head of UK milkand member services, said: “As a result of improvements through the supply chain, including recent developments in GDT auction prices, as well as initiatives from a number of our retail customers across Europe, our revenue has been positively impacted which is contributing to the first increase in Arla’s milk price for over six months.

    “While this is positive, it is too early to confirm that the global market trend has reversed.”

    Jonathan Ovens, Arla Foods amba board director, added: “We launched the farmer-owned marque last month and are delighted at the response we have received. Consumers can now easily identify and trust that when they buy dairy products, displaying the marque, they are responsibly sourced from a farmer-owned business where all the profits go back to our owners.

    “The marque has launched in stores across the UK and will be rolled out nationally on Arla branded and many retailer own label dairy products, over the next couple of months.”

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