Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: 

“The effect of continued inflation impacts Arla’s cost base and leads to this corrective reduction of the milk price, besides this the Commodity markets are overall stable. European milk intake is still very limited, in June we will probably end with a small growth, while July figures are indicating a small decline. The outlook is stable after the September decrease.”

Ash Amirahmadi, Managing director for Arla Foods UK commented; 

“This reduction comes after recent increases and a period of stability in our milk price over the last two years.  It is not ideal for our owners who are themselves experiencing inflationary costs on farm, however, right now as a business we are facing increased pressure of inflation across our global supply chain especially on fuel, energy and packaging which has been created by the positive global economic recovery following Covid-19. As a cooperative, ensuring a sustainable future for dairy and the most value for our farmer owners for the milk they produce is crucial to our commercial decisions, and will continue to be our priority.”