Dairy farmers were dealt another blow this week with news Arla is cutting its farmgate milk price.
The European farmers’ co-operative, which buys milk from one in four UK dairy farmers, will cut its price by 0.8p a litre to 23.01p a litre from August 3.
The dairy giant, which produces Lurpak, Anchor and Cravendale, said the latest price cut was a result of the continued pressure on global dairy markets.
The firm’s head of milk and member services in the UK, Ash Amirahmadi, said: “The downward price trend is continuing across markets globally, with the latest GDT auction down significantly by 10.7% and this has put further considerable pressure on the markets. The situation is not helped by high milk production throughout the world, while demand from China and Russia, in particular, continues to be low. These global developments are impacting all dairy markets throughout the world.
“While we are doing everything we can to further reduce our costs, grow our branded portfolio, launch the Arla brand into dairy, promote our farmer-owned status, and work independently with each of our customers to find solutions to deal with market volatility, we simply cannot influence the macro factors.”