Market uncertainty results in New Year price drop for Arla milk producers

WESTCOUNTRY dairy farmers supplying Arla Foods will see their milk price for January 2021 fall by 1.08p/litre, the processor has said, as markets experience “continuing uncertainty” due to

Brexit and the coronavirus crisis.

On-account prices for both conventional and organic milk will decrease by 1.2 euro cents per kilo from January 1.

This takes the conventional price down to 29.58p/litre and 37.94p/litre for organic farmers.

Arthur Fearnall, Arla Foods amba director, explained that global commodity prices had remained relatively stable. But he added that European prices, particularly for fat, yellow cheese and mozzarella, had weakened of late in response to growing milk volumes, Covid-19 impacts and Brexit uncertainty.