Arla milk price dips below 37p/litre in May
© Tim Scrivener Dairy farmers supplying Arla will receive an on-account price of 36.99p/litre from 1 May for a standard manufacturing litre.
The milk processor listed increased milk volumes and limited demand from consumers as the reason behind the drop.
See also: Sainsburys to drop Arla as own-brand milk supplier
This is a 2.65p/litre price cut on the previous month and a 14.13p/litre drop since the start of the year.
The manufacturing price is based on 4.2% butterfat and 3.4% protein with every-other-day collection.
Organic producers will also face a 2.65p/litre cut, putting the May organic milk price at 41.77p/litre.
Arthur Fearnall, Arla Foods amba board director and farmer-owner, said global milk supplies continued to grow even though farm input costs remained high.
“The increased supply and reduced consumer demand is adding to the volume of milk in the commodity markets and leading to a downward pressure on price.
“However, the market is changeable and moving towards stabilisation as markets get closer to balance,” he said.
Arla UK agriculture director Paul Savage added that a sustained decline in shopper spending continued to put pressure on farmgate milk prices.
Muller to stand on at 40p/litre
Farmers supplying Muller will continue to receive 40p/litre for a standard liquid litre of 4% butterfat and 3.3% protein from 1 June.
The Muller milk price has dropped by 8p/litre since January 2023.