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Arla announces August price rise

Arla Foods has announced its milk price to owners will rise by one eurocent per kilogramme from August 1.


Alex   Black

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Alex   Black
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Arla announces August price rise #teamdairy

For UK members, this equates to an increase of 0.81ppl taking the UK standard litre for conventional milk to 29.98ppl.

 

Arla Foods amba board director, Johnnie Russell, said: “I’m pleased that Arla is able to continue to reflect the market sentiment in its milk price for a second consecutive month.

 

“The current market situation is characterised by strong demand and low stocks of fat and this is driving up prices for products containing fat. Meanwhile the protein market remains stable, however at a low level.”


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Arla increase sees September milk price push above 30ppl Arla increase sees September milk price push above 30ppl

UKAF board votes to end early termination of contracts

UKAF has voted to remove the ability for members to terminate their milk supply contract with UKAF on short notice from the UKAF milk supply contract.

 

The resolution was passed with a vote of 94 per cent for the resolution and 6 per cent against. The contract changes came into immediate effect, following the vote so farmers were now bound to serve a 12 months notice period.

 

UKAF proposed the changes to:

 

  • Support the owner strategy transitional arrangements through aligning the UK owner farmers with Arla members in other markets
  • Due to additional business wins, the cooperative needed a secure milk supply to meet customer requirements
  • To stop existing Arla from bearing the burden for other members who leave at short notice exposing them to high third party milk price costs
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