Arla Foods’ on-account prices for conventional milk will decrease by 0.75 euro cents per kilo and the UK organic milk price will decrease by 1.5euro cent per kilo from 1 July 2020, however the figure will be positively impacted by a 0.03 ppkg quarterly currency adjustment.   When applied to the manufacturing price Arla’s pence per litre for conventional milk will be 29.26 pence and the organic price 37.62 ppl for Arla’s farmer owners who have completed their Arlagarden and Climate Check data.

Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: “After recovering from the low prices of March and April, commodity prices have started to stabilise in the last few weeks but at levels still below the pre-COVID-19 period. Demand remains uncertain as countries begin to open up but with differing levels of restrictions still in place.  Lower prices and uncertainty continue to impact the market. The UK organic market is seeing an imbalance between supply and demand in addition to COVID-19 uncertainties which is acting negatively on that market.  Other organic markets remain stable, though subject to the same uncertainties from COVID-19 as the rest of the dairy market. The current outlook overall is looking stable.”

Graham Wilkinson, UK Agriculture director at Arla continues: Graham Wilkinson, UK Agriculture director at Arla continues: “Despite significant redeployment measures and the start-up of the foodservice sector our organic demand continues to be dis-proportionally impacted by the Covid-19 disruption. Therefore regrettably we need to reflect the lower returns in our organic milk price whilst continuing to work with our customers to try and minimise the Covid-19 impact.”