Confirmation of the Arla Foods amba July milk price

Arla Foods amba on-account price will reduce by one eurocent per kg (0.77 pence when applied to the UK standard litre), with effect from 6 July 2015.

In addition, sterling has continued to strengthen and July sees a new quarter’s (April to June) average exchange rate being introduced to the pricing mechanism. The introduction of this quarter’s exchange rate into the mechanism has a 0.41 pence negative impact on the milk price.

The combined impact of the currency smoothing mechanism and the reduction to the on-account price lowers the UK standard litre by 1.18 pence, taking it to 23.81 pence.

The Arla direct milk price will reduce by 1ppl from 1 August 2015.

Commenting on the reduction, Ash Amirahmadi, head of UK milk and member services, said: “Commodity markets are continuing their downward trend, despite only a minor reduction in prices in the latest GDT auction. While we have taken significant mitigating actions, the impact has been felt on our traded business and more recently on European markets which are also in decline.

“Unfortunately, these factors are affecting the entire dairy industry and despite our efforts it has not possible to buck the trend. I can confirm that our customers in the UK are supporting us at this very difficult time for our members.”

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