Arla drops #milk price by 1.27p/litre

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Arla has dropped its standard litre milk price for UK farmers by 1.27p/litre to 33.74p/litre after pressure from falling global commodity prices.
 
Prices at Fonterra’s Global Dairy Trade auction have fallen for five consecutive sales, with the average winning price falling almost 20% since mid-February.
 
Ash Amirahmadi, Arla Foods UK’s head of milk and member services, said the business had to reflect some of the downward pressure in its on-account milk price.
 
“Over recent months there has been a significant negative trend in commodity markets and, while the business remains strong, unfortunately, we are not immune from fluctuations in the global dairy markets,” he said.
 
The European co-op’s 300m-litre recruitment drive and decision to raise its price in January to 35.01p/litre had forced other processors to keep prices firm so far this year, despite the market change.
 
Source: Farmers Weekly

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