Arla Foods announce further milk price cut

Arla Foods have announced they will cut their milk prices paid to farmers by 1.63ppl from December.

This is the second cut the company have announced in the past 2 months. Commenting on the reduction, Ash Amirahmadi, Arla UK’s head of milk and member services said: “Globally, milk production has increased by circa four to five per cent, which is out of sync with a lower increase in global demand of circa one to two per cent. This imbalance is resulting in large stocks and, as a consequence, markets have dropped sharply.

“Furthermore, Chinese demand continues to be sluggish and the Russian import ban is continuing to have an impact on European industry prices. This negative pressure is having a significant effect on Arla’s milk price.”

Chairman of Farmers for Action David Handley said: "I fully understand Arla farmers’ concerns, many of whom are members of FFA and have all been loyal supporters, but last year we did warn of the volatility of signing a contract.

"I am deeply concerned about what Arla is doing to the UK milk market and if Arla farmers in the UK again, whose milk

goes through Arla processing of which 80% of it finishes up on UK retail shelves, wish to join in the fight to stop further price cuts, we welcome you and I am sure as always you will continue to support FFA.

"As Chairman of FFA, I cannot see how any other body can say we have to put up with this situation. With more meetings scheduled and in the pipeline, we may get close to 1/3 of milk representation in the UK. Despite all our efforts so far, without protest, I fear today or tomorrow could be gloomy on the price front as we think Arla are going to announce a further milk price cut.

"On a slightly positive note in reality it should only impact on 3,000 dairy producers as the other 7,000 are not on a global price contract. "

"Last week's protests at Muller Wiseman went ahead and again were totally peaceful and gave farmers the opportunity to show their anger with regard to current milk prices.

"For these protests to continue and above all to be successful, we really do need more farmer support. We are only asking you to give up a short amount of your time to attend a protest because the size of the crowd makes a huge difference and for those who have not attended before, you will find most of the evening is very entertaining and you also can learn a lot by talking to your fellow farmers, plus many friends do get made on the picket line. So next time you hear of a protest, if you don't wish to stay for the full term at least come along and see how these protests are conducted. You might be very surprised that FFA are not the militant organisation some would like you to believe. Further protests will go head later this week and their details will be announced within the next 24 hours."

Farmers for Action also recently announced another series of milk price protests.