The Arla Foods on-account price will reduce by 2.5 euro cents per kg from January 5 in Europe. Overall, the total reduction from the on-account reduction and 13th payment changes takes the standard litre price to 24.81ppl.
Arla, along with other major UK dairy producers, has cut prices significantly over the current months, as the effects of the global dairy market continue to take their total on the UK industry.
Ash Amirahmadi. Arla’s UK head of milk and member services, said global supply and demand were still out of balance, and this was continuing to create downward pressure.
He said: “The knock on impact of weak international prices on the European markets has affected Arla’s business performance, as well as that of the entire dairy industry in Europe.
“The weak, but positive result of the recent GDT auction is welcome, however it is too early to conclude that there is any change in underlying market conditions.”
Arla farmers saw a reduction of 1.63ppl for December.