Farmers Guradian
Topics
Nine ways to keep your farm vehicles safe

Nine ways to keep your farm vehicles safe

Arable Farming Magazine

Arable Farming Magazine

Dairy Farmer Magazine

Dairy Farmer Magazine

CropTec

LAMMA 2018

New to Farmers Guardian?
Register Now
Login or Register
New to Farmers Guardian?
Register Now
New to Farmers Guardian?
Register Now

You are viewing your 1 free article

Register now to receive 2 free articles every 7 days
Already a Member?

Login | Join us now

Arla announces milk price drop - but maintains UK price

The Arla Foods amba price will drop but the UK price will be ’balanced’ by expected future benefits from currency



Twitter Facebook
Twitter Facebook
Share This

Arla maintains UK price for May #teamdairy

Arla Foods amba has announced a milk price drop of one eurocent per kilogramme, but will maintain the current UK price in May.

 

The conventional standard litre price in the UK will remain at 28.13ppl

 

In the UK, the UKAF board has used expected future benefits from the currency exchange mechanism to ‘balance’ the milk price throughout May.

 

 


Read More

‘Raged, to say the least’ - dairy farmers hit back after Arla cuts April milk price ‘Raged, to say the least’ - dairy farmers hit back after Arla cuts April milk price
‘There has been some upward movement in short term markets’ - First Milk announces June milk prices ‘There has been some upward movement in short term markets’ - First Milk announces June milk prices
Arla announces 13th payment Arla announces 13th payment
Arla looking to boost milk price by becoming ‘most collaborative innovator in the global dairy market’ Arla looking to boost milk price by becoming ‘most collaborative innovator in the global dairy market’
Arla reassures farmers appeal for more milk is demand led Arla reassures farmers appeal for more milk is demand led

 

 

It follows a drop of 0.79ppl last month, which was reduced to 0.42ppl by the currency smoothing mechanism.

 

Impact

 

Jonathan Ovens, Arla Foods amba board director said: “The one eurocent Arla Foods amba reduction has been fully reflected in UKAF’s cash flow.

 

“However, to avoid the unintended consequence of a double on-farm impact of a milk price reduction at the same time as maximum seasonality deductions, the board has adopted a pragmatic and prudent approach to use expected future benefits from the currency exchange mechanism to balance the milk price throughout May,” he said.

 

“Over the calendar year of 2017, and in accordance with Arla’s farmer-owned principles, the cash flow will be balanced and money in will equal money paid out.

 

“The UKAF board will continue to carefully monitor the cash flow and ensure that the integrity of the Arla Foods amba payment model is protected.”

Reaction

NFU dairy board chairman Michael Oakes said although the price reduction was disappointing, he was pleased that the UKAF board had recognised the fragility of UK members and decided to act accordingly.

 

He said: “Although we have seen improvements in dairy markets since the lows of last year, many dairy farmers remain in an extremely fragile place.

 

“They lack confidence in the future of the sector - compounded further by the impact and uncertainty of Brexit and the forthcoming General Election.

 

“All dairy farmers need a period of stability to recover from the downturn and prepare for the future. That’s why we need to look at new ways of managing risk and sharing reward.”

 

Disappointed

 

Arla dairy farmer Georgina Fort, said last month she felt 'bitterly disappointed' by the cooperative after it announced a price drop after being told about the positive progress on the Arla brand.

 

"A neighbour is on a local dairy and received 29p last month whereas we are a with a huge co op and are worse off.

 

"The announcement today, it is better then a decrease but there must be an increase next month," she said.

Twitter Facebook
Post a Comment
To see comments and join in the conversation please log in.
Facebook
Twitter
RSS
Facebook
Twitter
RSS