0.63ppl Milk price reduction for Arla members from July 1st

This reduces the standard liquid litre price to 28.17ppl and based on a manufacturing standard litre price of 29.26ppl.

Arla members organic milk price also reduces from July 1st by 1.3ppl, resulting in a standard liquid litre price of 36.21 and 37.62 on a manufacturing standard litre.

The Arla non-member/direct supplier conventional price for July will be held at 25.5ppl.

Whilst the majority of non-Arla suppliers together with Arla members had hoped for a stand on July price, the reality is that if we all look back over Arla’s 2020 milk pricing, it has been a remarkable result to date. According to our records, since January 1st the net reduction (on Arla’s conventional milk price) is 0.66ppl excluding currency adjustments and that includes todays 0.63ppl reduction. Even when currency adjustments are included, which amount to 0.26ppl the net reduction as of the 1st July is a 0.92ppl downward movement.

The Arla organic milk price has been hit by Covid19, in particular, the total shut down of McDonalds, who are Arla’s largest UK organic milk customer.

The net position for Arla’s organic supplier for the 1st January 2020 is an overall reduction of 3.14ppl excluding currency adjustments which amount to a reduction of 0.27ppl, which when the two are added together makes a total reduction of 3.41ppl.