Arla announces price reduction

A new milk pricing system has been agreed between Arla Foods UK and its supply group Arla Foods Milk Partnership (AFMP).

The agreement includes an immediate price reduction of 0.3ppl, with an extra 0.6ppl reduction in February and March only, to account for the recent decline in commodity prices.
Under the new system, producer prices will be directly linked to Arla’s sales and returns in four key areas: branded added value milks, fresh milk and cream sales, butter, export cream and skimmed milk powder, and the impact of balancing seasonal variations in milk production to match Arla’s needs.
Peter Walker, Arla’s director of milk buying, and Jonathon Ovens, AFMP chairman, said the system would lead to more stable and transparent future pricing policy.