Relief for members as Arla holds April milk price  

Arla is holding its April milk price for full members, following a 0.9p/litre rise for March.

However, because the Arla price is set in Euro, a currency adjustment will see on-account prices for conventional and organic milk fall by 0.15p/litre.

This puts the UK manufacturing price for conventional milk at 30.79p/litre and the organic price at 39.83p/ litre from 1 April.

The drop follows a 0.9p/litre rise for March, which in turn followed a record-breaking 14-month run of unchanged prices.

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“The entire global economy is overshadowed by the effects of the Covid-19 pandemic and the actions taken by governments across the world to limit its spread,” said Arla Foods amba board director, and farmer owner, Arthur Fearnall.

“The dairy market is no exception, where we are seeing volatility in both demand and prices across all product categories and markets. It is, however, too early to assess what the overall impact on the dairy market will be and we are following market developments closely.”

Responding to the price news, NFU Scotland milk chairman Gary Mitchell, said: “The last seven days has been extremely unsettling for the whole country. However, the farmers of Scotland have as expected stepped up to the plate to keep the food supply flowing.

“While this news from Arla is welcome, especially in the current turbulence, it is hoped that both retailers and milk buyers recognise the work of all the dairy farmers in Scotland and that this recognition is demonstrated in both the short and long term. 

“Costs on farm are rising and this needs to be made clear. The next few weeks are going to be a challenge for all, but dairy farms will do what they do best and produce a product that we all know is as popular as ever. 

“It is also important to stress that all farmers, their families and staff, must stay safe at this time and I would urge all to follow government guidelines to ensure we all get through this together.”

Arla managing director Ash Amirahmadi said the business was working around the clock to keep its people safe and to supply customers with the products that they want.

“These are challenging times and it is encouraging to see the grocery retail sector and farming pulling together.

“I would like to thank every individual working across Arla, from farm to store delivery, as they continue to work exceptionally hard to prioritise getting milk on the shelves, to deliver for Britain,” he said.

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