Dairy farmers supplying Arla will see little change in the price of milk next month after the UK’s biggest cheese manufacturer announced it was holding prices in April.
The quarterly currency smoothing mechanism, in place because Denmark-based Arla pays for milk in euros, will shave 0.01p/litre off milk prices, but company leaders said the market fundamentals were unchanged.
The manufacturing price will be 30.23p/litre for milk at 4.2% fat and 3.3% protein, the fourth month of unchanged prices for the 2,400 farmers feeding into the company’s products such as Anchor and Cravendale.
Those on a liquid contract will receive 29.06p/litre for milk containing 4% fat and 3.3% protein.
Arla Foods amba board director and farmer owner Johnnie Russell said: “European milk volumes in most major countries are in line or slightly higher than this time last year and, as a result, markets have been quiet and overall global prices remain relatively stable.”
He added: “There has been some weakening in fat prices. Global protein prices have continued to recover, offsetting the impacts of the lower fat prices, and cheese prices have stabilised following recent increases.”