Arla Foods has cut its milk price for June supplies of milk by 1.3c/kg, with effect from June 1, 2016.
When applied to the UK standard litre it equates to a reduction of one pence, taking the UK standard litre to 19.12p/L (24.93c/L) for June.
Arla also cut its price for May supplies of milk in April by 0.75p/l (0.95c/L) and farmers supplying the co-op also received a milk price cut for April of 0.75p/L (0.95c/L).
According to Arla, the market continues to be impacted by the global imbalance between milk supply and demand.
Currently, it says that commodity stocks are high and the market is extremely competitive which is continuing to generate further downward pressure on prices.
Arla Foods amba Farmer Board Director, Johnnie Russell, said that recent data suggests that the global growth in milk production is levelling off, which may lead to volumes stabilising later in the year.
“However, it is too early to predict whether this trend will continue over the coming months.
“Arla will continue to maximise the returns from the marketplace and provide a secure home for every litre of owners’ milk at one Arla price.
“The business is continuing to grow sales of branded products, through increased marketing, as well as processing milk from our farmer owners into products for the foodservice sector.”
Arla Foods is a global dairy company and co-operative owned by 12,700 dairy farmers with circa 3,000 of whom are British.
