Dairy co-op Arla has frozen its milk price for the second month in a row.
The Arla Foods’ amba on-account price for conventional milk will remain unchanged during August 2016 at 19.05p/litre. This will apply to its 2,700 British co-op members.
It follows signs of a slow-down in milk production and the beginnings of a tentative milk price recovery.
Johnnie Russell, Arla Foods amba board director, said: “The strengthening of commodity markets, as well as some European retail markets, indicates that markets are continuing to firm and we believe that the market situation is more stable.”
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The price-hold follows the release of figures which showed UK daily milk deliveries dropped by 4m litres/day in the two weeks to 2 July compared with the same period last year.
Yesterday the NFU’s dairy board chairman Michael Oakes said processors were getting worried about the slowdown and were starting to recruit producers.