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NFU slams Arla price reduction

The UK’s National Farmers Union (NFU) has reacted angrily to the announcement by Arla that the company is reducing the price it pays for milk. Arla Foods had announced that the on-account price will reduce by 2.5 euro cents per kg in Europe which equates to a price cut of 2.03ppl from January 1, taking […]

The UK’s National Farmers Union (NFU) has reacted angrily to the announcement by Arla that the company is reducing the price it pays for milk.

Arla Foods had announced that the on-account price will reduce by 2.5 euro cents per kg in Europe which equates to a price cut of 2.03ppl from January 1, taking the standard litre price to 24.81ppl.

“I feel desperate for those 3,000 dairy farmers supplying Arla who’ve been delivered the worst possible Christmas present,” said NFU president Meurig Raymond. “It couldn’t have come at a worse time and this latest reduction will continue to place huge pressure on cash flows for these farmers in the months ahead. It is vital that we don’t see this trend continue through other processors’ February price announcements.”

“For the first time producer numbers have dipped under 10,000 with 60 going out of business in November alone. We will continue to put pressure on Government, retailers and the processors with the aim of trying to rebuild an economically sustainable dairy industry. We cannot emphasise enough how awful this downward spiral has been for the dairy industry in the UK.”

“Today’s announcement from Arla is yet another body blow for the industry and will further devastate dairy’s bottom line,” said NFU dairy board chairman Rob Harrison. “But despite this news, dairy farmers across the country, including myself, will continue to provide the nation’s milk – working 52 weeks a year, without a break, and yes, even on Christmas day we’ll be up and in the parlour at 4am before being able to spend some precious time with our children and families.”

“All we ask is that the public continues to buy British dairy products over the festive period, including British cheese, look out for the Red Tractor logo and continue to back British farming.”