Arla to increase milk price by 0.74ppl
Further to last week’s announcement of a one eurocent increase in the Arla Foods amba milk price, the Arla Milk Link and Arla Milk Cooperative boards confirm that this equates to a 0.74ppl increase for the 2,800 British owners of Arla Foods amba, from 3 February 2014.
The increase is due to the continued strengthening of the performance of the business over the past month. Furthermore, the cooperative predicts a continuing stability of market conditions over the coming months.
The 0.74ppl increase takes the Arla milk price to 35.01ppl. This is made up of an on-account price of 34.25ppl, plus a forecasted 13th payment. All milk supplied in 2014 will be eligible for the 13th payment and this will be paid in March 2015. The 13th payment will be reforecast every month and is based on the global Arla Foods amba formulaic pricing mechanism, agreed with the elected farmer representatives. The principle of the formula is the higher the on-account milk price, the lower the 13th payment; the lower the on-account milk price, the higher the 13th payment.
Jonathan Ovens, AMCo chairman and British farmer director of Arla Foods amba, said: “Less than a month into becoming co-owners of the global cooperative Arla has increased the milk price. This is welcome news for all of our members who are now receiving one of the leading prices and is a further demonstration that we have made the right decision to join the cooperative.”
Johnnie Russell, AML chairman and British farmer director of Arla Foods amba, said “The increase is due to a strong business performance and, as co-owners of a global dairy business, we are able to benefit from the strength of world markets and benefit from being able to access a broader marketplace for our milk, which in turn delivers a higher return.”
Ash Amirahmadi, head of milk and member services, at Arla Foods, said: “This is a great start to the year for our 2,800 British owners and will put us in a good place to secure the further 300 million litres of owner milk that we are looking to recruit.”