Arla's December milk price remains unchanged

The impact of the second wave is beginning to be felt in the markets, Arla warned
The impact of the second wave is beginning to be felt in the markets, Arla warned

Arla's prices for conventional and organic milk for December will remain unchanged due to an 'uncertain outlook' caused by Covid-19's second wave.

The UK's largest dairy company's manufacturing price for conventional milk will remain at 30.66p per litre and the organic price 39.02ppl.

Global milk volumes continue to show year-on-year growth of around 1%, the co-operative said, adding that the second wave is impacting the market.

Arla Foods amba board director, Arthur Fearnall said: “Last week’s global powder prices were weaker than expected, with prices being negatively impacted by aggressive pricing from the US and, for the first time, active exports from India."

In Europe, the renewed lockdowns are beginning to influence demand for cheese as food service is once again hit, he said, with buyers becoming more hesitant to reduce prices.

"Due to the uncertainty arising from the latest Covid-19 situation and the continued lack of clarity around Brexit, the current outlook is uncertain with the potential for negative developments.”

Alice Swift, UK agriculture director at Arla added: “Throughout this year from farm to store we have been working tirelessly to ensure that we prioritise the safety of our colleagues and delivery for our customers, despite some extreme challenges.

"As we make our way through this second lockdown, we are once again having to adapt and move quickly to changing consumer demands and the food service sector is once again being impacted, although not as hard as it was during the first lockdown.

"We have learnt many lessons this year, which have stood us in good stead to manage the quick changes required."