Arla holds March milk price at 21.81p/litre

Dairy co-operative Arla has confirmed it will hold the standard litre milk price paid to members at 21.81p/litre for March.

Ash Amirahmadi, head of milk and member services at Arla Foods UK, said the decision to hold prices was down to the ongoing imbalance between conventional milk supply and demand.

A significant increase in production across northern Europe was also resulting in higher cheese and ingredients stocks, resulting in sustained downward pressure on the markets.

See also: Arla downgrades dairy recovery hopes to late 2016

“The Gobal Dairy Trade auction has also mirrored this with a downward trend.  In contrast, the market for organic products, mainly in Europe, remains strong and organic milk continues to be in demand.”

Arla says it now has about 2,700 farmer members in the UK, although a press release issued by the company as recently as November 2015 put the figure at 3,000.

A spokeswoman said member numbers were only published once a year and the difference was due to “rounding” rather than the loss of hundreds of members.

The co-op is also supplied by direct milk suppliers, although it does not publish how many.