There is a small positive adjustment to the 2015 forecasted 13th payment which equates to a 0.06ppl increase, raising the UK standard litre price to 24.87 pence. Read the press release on the Arla website here.
The NFU will continue to work closely with processors to ensure no-one takes advantage of the market situation, and fairness like this in sharing better news in terms of forecasts to hold milk prices where possible is some respite for dairy farmers.
Commenting on the price, Peter Winstone, Arla Foods amba farmer board director, said: ”Arla’s milk price is calculated using a formulaic pricing mechanism, based on the revenue of the entire global business. The performance of the business in January along with the forecast for the financial year, on which the February price is calculated, indicate that Arla is in a position to be able to maintain its milk price into February for our 13,500 owners, including 3,000 from the UK.”
Ash Amirahmadi, head of milk and member services at Arla Foods UK, added: ”The GDT auction continues its weak upward trend, but the imbalance between supply and demand continues. Markets remain under pressure and this is affecting the entire dairy industry across Europe. Unfortunately, the uncertainty in supply and demand over the coming months continues to impact on market conditions.”
Rob Harrison, NFU Dairy Board Chairman, said: “With Arla being the largest milk buyer in the UK, today’s news of a price hold in February will be a welcome relief to their members. With three successive positive global dairy auction results this year there are early signs that the global market is starting to settle. We are challenging all processors to react to these changes in the market appropriately and quickly in order to alleviate the huge pressure facing our dairy farmers.”
You may also be interested in...