Arla and FFA hold price talks

ARLA FOODS and Farmers For Action have said they have had constructive talks, following the processor’s decision to reduce its milk price by 0.35p/litre.

In a statement issued on Tues (Jun 7) the processor also said it wanted to affirm its commitment to milk price stability.

The statement came after a meeting on Mon (Jun 6) with FFA chairman David Handley and separate discussions between Arla and Richard MacDonald, director general of the NFU.

“Of course we understand that, as market leader, our activities do affect thinking in other parts of the chain,” said Arla chief executive Tim Smith.

“We explained to Mr Handley that we had consistently held our price in line with the promises we had made back in December.

“The recent reduction of 0.35ppl puts the Arla June price at 19.65ppl compared to the average Robert Wiseman price of 19.94ppl* and the Dairy Crest price of 19.5ppl. 

“Prices are therefore pretty much in line, reflecting the different business mix of each company and there is no justification for our action to be cited as the trigger for further downward movement in the market.”

Speaking to FARMERS WEEKLY Mr Handley agreed that the two and a half hour meeting on Monday had been constructive.

“We told Arla there would be no negotiation over the 0.35p/litre, but we discussed a number of ways to get around this problem.

“Arla is now looking into these further and has to come back to us by Mon (Jun 13). Until then we will take no further action.”

* Robert Wiseman Dairies has pointed out that FARMERS WEEKLY’S latest Milk Price Review puts the rolling 12 month average price for Wiseman at 20.01p/litre.