Arla freezes March milk price

Arla Foods amba is freezing its farmgate milk price for March.

The co-op’s 3,000 farmer members will be paid 24.97p/standard litre next month.

This represents an overall increase of 0.1p/litre as the group’s forecast for its 13th payment has increased to 0.78p/litre while the base remains unchanged. 

The most recent online Global Dairy Trade auction of wholesale milk products recorded the fifth rise in a row for the index, racking up a 34% increase overall since its December low.  

See also: Dairy co-op Arla rides tough 2015 with rising profits

“The GDT auction has continued to follow a firm upward trend and this could have a knock-on effect on other markets over the coming months,” said Ash Amirahmadi, head of milk and member services at Arla Foods UK.

“Although global supply and demand so far this year is more in balance, it is too early to predict whether this trend will continue in a sustainable way.

“One of the key factors influencing this is the level of EU milk production post-April, following the abolition of quotas.”

The stand-on for March follows a price freeze for February, after Arla cut 2p/litre off its January price.

Recent price moves announced by other major buyers include:

  • First Milk – hold for March, with liquid contracts at 21.2p/litre, manufacturing pool at 21.57p/litre.
  • Dairy Crest – 1.5p/litre drop in headline for March, putting its liquid contract at 23.09p/litre, and Davidstow cheese contract at 25.09p/litre. The company also introduced a farmers’ price floor until July.
  • Muller Wiseman – 1.75p/litre cut to 24.15p/litre in March for those outside supermarket contracts.