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Arla holds price for August

The Arla Foods amba on-account price for conventional milk is unchanged during August 2016.


Alex   Black

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Alex   Black
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Arla holds price for August #teamdairy

The price will be held at 19.05ppl.

 

In July, Arla held its price, although the average exchange rate meant it fell 0.07ppl from June’s price.

 

Commenting on the decision, Arla Foods amba board director, Johnnie Russell, said: "The strengthening of commodity markets, as well as some European retail markets, indicates that markets are continuing to firm and we believe that the market situation is more stable."

 

NFU

 

Michael Oakes, NFU dairy board chairman, said: “Official figures from AHDB show that milk volumes for May were down 4.8 per cent on the year, with daily deliveries now down 9.2 per cent down on the same time last year.

 

"UK market indicators are also showing improvements with AMPE delivering 18.9ppl for June, up 12 per cent on the previous month, and MCVE up 19 per cent to 19.6ppl for June."

 

"We do understand that the Arla milk price is based not only on UK factors but on movements across Europe. It is concerning that we are yet to see production drop in many other member states - we need farmers across Europe to react to the market downturn just as our own have done.

 

"This price hold should not lead other milk buyers to follow Arla’s decision on price and does clearly call into question the practice of ’basket pricing’ used by a number of processors.

 

"While initiatives such as Arla’s ’Farmers Milk’ and its consumer facing campaign are positive we really do need to see an upwards movement on price, and soon. From an Arla member perspective I’d want a guarantee that Arla is doing all it can to roll out these retail initiatives outside the UK too."

 


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