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Arla announces 2.16ppl March milk price drop

Arla said the price had been hit by the recent dramatic falls in the commodity markets from the highs of last autumn


Alex   Black

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Arla announces 2.16ppl March drop #teamdairy

Arla’s price for conventional milk will reduce by 2.16ppl, taking it to 27.11ppl from March 1.

 

Arla Foods amba board director, Johnnie Russell, said: “While this will be unwelcome news for our farmer owners, the challenge that we face is that our price, in common with those or our competitors, has been impacted by the recent dramatic falls in the commodity markets from the highs of last autumn.“


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He added last year’s increases were driven by fat but the long term decline in the value of protein since the start of 2017 had a ‘significant impact’ with prices at ‘a historical low with little prospect of recovery, due to the large stocks held by the EU’.

 

While cheese prices have begun to recover they were still below the levels of a year ago.

 

Butter has also started to increase but were only slightly ahead of last year’s prices with the overall price of fat and protein combined still lower than this time last year.

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