Dairy cooperative Arla has confirmed its price for conventional milk price will remain the same for April 2019.
The price it pays out to its 2,400 British farmer owners will be held for a fourth consecutive month.
However, this month it will be negatively impacted by a quarterly adjustment in the currency smoothing mechanism of 0.01pence per litre from 1 April 2019.
When applied to the UK manufacturing price this will reduce Arla’s pence per litre to 30.23 pence for farmer owners.
Arla Foods amba board director, Johnnie Russell, said: “Being farmer owners in a European dairy cooperative, with global reach, is having real benefits for farmers in the UK, which are reflected in the milk price.
“European milk volumes in most major countries are in line or slightly higher than this time last year and, as a result, markets have been quiet and overall global prices remain relatively stable. There has been some weakening in fat prices.
“Global protein prices have continued to recover, offsetting the impacts of the lower fat prices and cheese prices have stabilised following recent increases.”
Mr Russell added: “This has meant that overall despite the current uncertainties in the UK market, we have been able to hold our price relatively stable.”
Arla farmers are paid on constituents via a manufacturing schedule. For ease of comparison, the liquid price is 29.06 pence per litre based on 4% fat and 3.3% protein.
The on-account price for organic milk will reduce to 41.98 pence per litre, including the negative impacted of the quarterly adjustment in the currency smoothing mechanism.
