A vote has seen 94% of elected representatives for the UK’s largest dairy processor, Arla, vote in favour of ending three-, six- and nine-month notice periods on Thursday (20 July).
Effective immediately, producers must now observe a 12-month notice period should they wish to leave the co-op, where previously they could have bought themselves out according to a sliding scale at three-month intervals.
The resolution was passed by UKAF representatives in order to strengthen co-op’s long-term milk volume stability in light of recent growing demand, according to an Arla spokesperson.
Milk price rise
Meanwhile, Arla Foods has increased its milk price for its 12,000 European farmer-owners by one eurocent per kg from 1 August.
The increase equates to a rise of 0.81p/litre to 29.98p/litre when applied to the UK standard manufacturing litre at 4.2% butterfat and 3.4% protein.
The standard liquid price will be 28.82p/litre from the start of next month – a rise of 0.79p/litre.
Arla Foods amba board director Johnnie Russell said: “I’m pleased that Arla is able to continue to reflect the market sentiment in its milk price for a second consecutive month.
Strong fat demand
“The current market situation is characterised by strong demand and low stocks of fat and this is driving up prices for products containing fat.
“Meanwhile, the protein market remains stable, however at a low level.”
The price hike is Arla’s second in a row, over which its manufacturing price has increased by 8% (2.46p/litre).