Arla Foods amba is dropping its global farmgate milk price for co-op members by €1.25 cents a kilogram.
The cut, which takes effect on 4 August, equates to a 0.94p reduction in Arla’s UK standard litre price, taking it to 31.58p .
Arla UK head of milk and member services Ash Amirahmadi said the reduction was necessary due to “a further downward movement in global and European prices, which are affecting the entire industry”.
The cut comes 24 hours after Dairy Crest announced it was reducing its farmgate price for standard liquid and Davidstow cheese contracts by 1.1ppl from 1 September. The price for Dairy Crest liquid milk will be reduced from 31.2ppl to 30.1ppl, while the price for the 400 farmers on Davidstow contracts will drop from 33.2ppl to 32.1ppl.
Dairy Crest Direct, which represents the 1,100 farmers who sell their milk direct to Dairy Crest, blamed the reduction on “declines in the underlying global dairy ingredient markets, strong milk production and further cuts in UK competitor pricing”.
Earlier this month, Müller announced it would drop its standard milk price by 1.2ppl from 3 August to 30.8ppl, while First Milk is cutting its liquid milk price by 1.75ppl to 28.75ppl from 1 August, with its manufacturing price reducing by 1.25ppl to 29.60ppl.