26 October 2015

2 minute read

Commenting on the situation, Ash Amirahmadi, head of milk and member services at Arla Foods UK, said: “Despite production slowing down and even declining in some parts of the world, global supply is still increasing. Milk exports from the USA and New Zealand have decreased while supply from the UK and mainland European markets continue to increase.

“After a couple of months of welcomed growth the market for commodity milk powders has stabilised as shown by the latest GDT auction. However, the bulk cheese market is still under considerable pressure in Europe as a result of significant stocks and limited export opportunities partly due to the Russian ban on imported cheese.

“In Central Europe and in the UK retail markets have seen a positive development, particularly on liquid products, which has contributed to the much needed stability in our farm gate milk price.

“As a business, we are continuing to build on the success of our farmer-owned marque here in the UK and globally across all our markets and our focus remains on building awareness of our marque on Arla branded products to help secure sales for our 12,700 farmers worldwide.”

NFU dairy board chairman Rob Harrison said: “Today's announcement is a reassuring sign of stability for farmers, despite some markets still remaining very challenging. Dairy producers across the UK are facing a difficult winter and it is important that dairy companies continue to communicate with their farmers to help with planning and to build confidence in the future.”

TheCattleSite News Desk