Arla Foods has today announced a reduction in its farm gate milk price for February, a senior company offical said.
The Arla Foods amba co-operative is cutting the “on-account price” it pays to its farmer members by one eurocent per kilo, with effect from 1 February.
When this reduction is applied to the UK standard litre it equates to a downward movement of 0.75 pence. There is also a small adjustment of 0.05 pence per litre in the forecasted supplementary (13th) payment because of lower overall returns, due to the commodity market impact, Arla said.
These two adjustments, totalling 0.8 pence, take the UK standard litre price to 21.81 ppl.
This follows news of Muller announcing a 1p/litre slash in farmgate milk prices from 15 February, claiming it can no longer protect its suppliers from the “realities of the market”.
