The Arla Foods amba on-account price will reduce by 2 cents per kg with effect from 1 December 2014.
This reduction takes the UK standard litre to 26.84 pence, a total drop of 1.63 pence; made up of a 1.62ppl reduction in the on-account price and a 0.01ppl reduction in the forecasted 13th payment.
Ash Amirahmadi, Arla UK’s head of milk and member services, said: “Markets continue to be challenging, due to the prolonged impact of the significant global supply and demand imbalance, as witnessed by further reductions in the GDT auction.
“This imbalance is having a material impact in all European markets, with a consequential impact on earnings across the entire dairy industry.
“Arla has taken mitigating actions to reduce the impact on our owner milk price but, ultimately, it is not possible for Arla to negate the impact of global markets.”