The Arla Foods amba on-account price will reduce, with effect from 1 June 2016, by 1.3 eurocents per kg.
When applied to the UK standard litre it equates to a reduction of one pence, taking the UK standard litre to 19.12 pence.
The market continues to be impacted by the global imbalance between milk supply and demand. Currently, commodity stocks are high and the market is extremely competitive which is continuing to generate further downward pressure on prices.
Arla Foods amba Farmer Board Director, Johnnie Russell, commented: “Recent data suggests that the global growth in milk production is levelling off, which may lead to volumes stabilising later in the year. However, it is too early to predict whether this trend will continue over the coming months.
“Arla will continue to maximise the returns from the marketplace and provide a secure home for every litre of owners’ milk at one Arla price. The business is continuing to grow sales of branded products, through increased marketing, as well as processing milk from our farmer owners into products for the foodservice sector.”