Arla tanker on farm© FLPA/Rex Shutterstock

Dairy farmers supplying Arla Foods amba have started to receive news from the processor that their on-account milk price of 23.04p/litre will be maintained for December. 

This will affect the co-op’s 12,700 farmer-owners, including about 3,000 in the UK.

This is effectively the third month of stability after an increase of just 0.03p/litre at the end of September.

Ash Amirahmadi, head of milk and member services at Arla Foods UK, said: “Positive developments in retail markets in central Europe, and the support of retailers in the UK, continue particularly on liquid products, and it is these developments that are contributing to the much-needed stability in our farmgate milk price.

See more: Milk production in top five dairy exporting areas starts to fall

“The firming of the market that we witnessed last month has turned and is weakening once more.

“Although milk supply in the US and New Zealand continues to weaken, volumes in the northern part of Europe continue to increase.

“Market trends continue to be mainly supply driven, while demand is stable but weak as a result of the continuing situation in Russia and China.

“The positive trend for commodity powder has turned negative once more, as demonstrated by the downturn of the last three GDT auctions.

“Meanwhile, the yellow cheese market continues to be put under pressure by the impact of increased milk production in northern Europe.

“Our farmer-owned marque is continuing to build momentum both globally and in the UK and we believe that this proposition, which now features on our Arla-branded product range, will help to increase sales for the benefit of our 12,700 owners throughout Europe.”