1.09ppl nett price cut for Arla members – from January 1st

Whilst this is unwelcome news it’s a better result than most anticipated and will undoubtably temper the enthusiasm of other buyers currently planning to drop their farmgate milk prices by 3ppl (or more) from 1^st February.

This reduction applies to both Arla Organic and Conventional and is split into 1 Euro Cent (0.86ppl) price cut plus 0.23ppl currency adjustment.

The resulting 1^st January standard litre prices are

                                                Conventional                     Organic

Manufacturing                     51.12ppl                               55.90ppl

Liquid                                    49.11ppl                               53.72ppl

For those not as in touch with the markets the reasons for the reductions are almost worldwide increase in milk output resulting in a rapid drop in world dairy commodity prices as well as reduced consumption due to adverse consumer reaction to prices increases.