25-Feb-2020 - Arla Foods Ltd

Arla Foods amba confirms March milk price

Arla Foods amba’s on account price for conventional milk will increase by 1 eurocent for March 2020. When applied to the UK manufacturing price it will increase by 0.90 pence per litre to 30.94ppl. The Arla on-account price for UK organic milk will decrease by 1 eurocent for March 2020 which when applied to the UK manufacturing price will see a decrease of 0.90 pence per litre to 39.98ppl.

Arla Foods amba Board Director, and farmer owner, Arthur Fearnall, said: “Global milk production, having been stable through most of 2019, ended the year with most major exporting areas starting to show growth in production. Only in Oceania did volumes decline, due to hot and dry conditions particularly impacting New Zealand. Commodity markets remain strong, though the recent trend of increasing protein prices and reducing fat prices continue, particularly in Europe. Whilst the market fundamentals appear unchanged, the fear of reduced demand in Asia due to the Coronavirus has had a negative impact on global powder prices. Markets do not like uncertainty.”

Graham Wilkinson, UK Agriculture Director at Arla Foods UK continues: “UK organic milk production has remained strong but demand has weakened, resulting in an imbalance in the market. Whilst the reduction to our Organic price is unwelcome for our Organic farmer owners, as a business it remains a strategic priority for us and is why we remain committed to continuing to fuel the growth of organic products and expanding our organic portfolio to offer consumers greater choice.”

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