Arla freezes farmer milk price for September

Arla has delivered some better news to its British farmers by holding its member milk price for September.

The co-op’s 3,000 UK producers will be paid 23.01p/litre next month – some welcome stability after a 0.8p/litre drop in August.

Arla has enjoyed a cash boost in the past fortnight from several supermarket pledges to help crisis-hit farmers.

Asda’s promises will help Arla farmers particularly. Britain’s third biggest retailer will now pay the co-op at least 28p/litre for all its liquid milk and committed to using Arla’s new farmer-owned marque.

Ash Amirahmadi, Arla’s UK head of milk and member services, said current and future business performance had allowed the price freeze.

“However, we must remain cautious,” he said.

“The global dairy market remains volatile and it is too early to indicate whether the tide has turned because farmer milk production remains high on a global level, against a backdrop of restricted demand.”

World dairy markets remain depressed due to oversupply and sluggish interest from buyers.

Key benchmark the Global Dairy Trade Auction saw prices jump 14.8% this week – the first positive result since March.

But the amount of product offered for sale was significantly pulled back and prices are still close to two-thirds down on February 2014’s all-time high.

Protests against the low prices have continued in the UK, with the dairy crisis making national headlines over the past two weeks.

Arla farmer board director Jonathan Ovens said the co-op was encouraged by the support in Britain and abroad.

“We have launched our farmer-owned marque through the UK and our global business,” he said.

“It has been received favourably with our farmers and customers and is gathering momentum.”