2.16ppl milk price drop for Arla members is a blow

Whilst most people who study and understand the dairy markets expected a 1.5 to 2 Euro Cents Arla member price drop for March no one anticipated a whopping 2.5 Euro Cents, which converts to an eye watering 2.16ppl manufacturing member price drop.  Note, Arla’s organic milk price remains unchanged.

This reduction results in a liquid standard litre price of only 26.08ppl and a manufacturing standard litre price of 27.11ppl. 

This means in the space of three months Arla’s member price has gone from being one of the best (liquid 31.05ppl and manufacturing 32.3ppl) to the worst in the UK, subject to any further announcements from other companies.

This drop has not gone down well with members and two emails received today by Ian are even questioning whether such a brutal cut would have happened on Jonathan Ovens’ watch, compared to Johnnie Russell’s being in situ. While it can’t be proven it’s a fact Ovens would have certainly fought hard against such a brutal cut. It’s up to Arla members to decide whether Russell fought hard against it. Or even at all.

It certainly didn’t stop Russell leaving yesterday’s board meeting to go on holiday to Spain and his G&T and sun lounger, and whilst he is quoted in the official Arla press release he has made himself uncontactable and unaccountable to the members he represents, and who are demanding answers to what is one of Arla’s biggest ever price cuts.