Arla Foods on account price for conventional, as well as organic milk in the UK, for January 2020 will remain unchanged as the co-operative reflects on a year of global milk market stability.
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However, this month it will be negatively impacted by a slight quarterly currency smoothing adjustment of 0.15p/L.
When applied to the UK manufacturing price, Arla’s pence per litre for conventional milk will become 30.04p and the organic price 40.88p/L, from January 1 for Arla’s farmer-owners.
‘Stable Global Markets’
Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: “Right now, global milk production remains stable and the balance on supply and demand of organic milk means prices have remained under pressure in Europe.
“Fat prices have remained stable recently, supported by the normal seasonal demands, while demand for skimmed milk powder remains strong and cheese prices have faltered slightly in the face of limited demand pre-Christmas.
At a time of year, when many of us reflect and look back on what we have achieved, with this milk price hold we are looking back at a full year of stability in the Arla milk price, which I know will bring seasonal cheer to all our farmers.
Graham Wilkinson, UK agriculture director at Arla, continued: “Off the back of what was a turbulent few years for the industry, including most recently the impact of the drought of 2018, the stability of the milk price for Arla farmer-owners over the last 12 months has shown the strength and benefit of being part of a leading global cooperative.
“In the UK, it has given our owners the confidence to focus on longer-term and industry-leading initiatives such as becoming Carbon Net-Zero by 2050, which will ultimately secure and build a sustainable dairy industry fit for the future.”

The delay in details being issued on the proposed dairy reduction scheme is “playing with the futures” of farm families, according to the Irish Creamery Milk Suppliers’ Association (ICMSA).

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