The board of Arla Foods has met to set its conventional milk price for September 2018. The board announced today that its standard UK manufacturing will remain at 31.38p/L.
Back in June, the firm was the first major UK milk processor to cross the 30p/L mark, setting its standard litre price at 30.5p/L.
The firm is supplied by almost 2,500 UK dairy farmers.
‘Uncertainty in the market’
Commenting on the decision to hold its milk price, Arla Foods board director, Johnnie Russell, said: “There is no doubt that the weather is causing some significant challenges for our farmers and, while the impact on overall European milk production has been limited so far.
“There is uncertainty in the market as a result of further volatility and concern on future milk volumes caused by the dry weather.”
The manufacturing price is based on every other day collection, top quality, one million litres at 4.2% butterfat and 3.4% protein.
Arla farmers are paid on constituents through a manufacturing schedule. For ease of comparison, the liquid price is 30.16p/L, based on 4% fat and 3.3% protein.
The Arla on-account price for organic milk will also remain unchanged from September 1, 2018.
The news comes just a month after the pan-European dairy cooperative warned a border breakdown could leave UK consumers with less choice and higher prices.
At the time, the firm said that if the findings of a London School of Economics (LSE) report prove true, non-tariff barriers to trade and restricted access to labour after Brexit could leave British consumers facing restrictions in the availability of butter, yoghurts and cheese.
