Arla slashes standard milk price again

Arla has dropped its standard litre milk price by 1.23p/litre – the second drop in three months.

The co-op’s UK members will be paid 32.52p/litre from 7 July, as the supplementary or 13th payment has risen 0.04p/litre.

In April, the European dairy giant cut its member price by 1.27p/litre, blaming weak returns from world commodity markets.

But improving results on the Global Dairy Trade auction and a price rise from Arla’s main continental competitor Friesland Campina had led to hopes the market was steadying.

“In previous months, Arla Foods amba has reported challenging global market conditions for dairy products and, generally speaking, this remains the case,” said Arla UK’s head of milk and member services Ash Amirahmadi.