Arla Foods, the global dairy cooperative owned by 13,500 dairy farmers, of whom around 3,000 are British, has announced that it is to cut its milk price by 1.2p per litre (ppl) from 1 September 2014.
The move will reduce Arla's UK standard milk price to 30.38ppl and follows on from a reduction of 0.94ppl last month.
Commenting on the price cut, Ash Amirahmadi, Arla's head of milk and member services, said: "Global commodity markets have fallen sharply over recent months - a development that has affected dairy companies, including Arla. In addition, Russia has announced a ban on agricultural imports from certain states, including the EU. The ban has affected Arla Foods' exports and we are now unable to export products to Russia.
"This further reduction in Arla's global milk price is necessary due to a continued downward movement in global and European prices."
Arla Foods UK is the largest dairy company in the country processing 3.5bn litres of milk a year and has a turnover of £2.2bn. As well as being a leading processor of fresh milk, butter, spreads and cream, it is also the UK's largest cheese manufacturer.
Market round-up
Messrs Craig Wilson Ltd had 3,339 sheep forward at their annual show and sale of Scotch Mule gimmers and ewe lambs at Ayr on Thursday, as well as breeding sheep and store lambs.
The champion pen of Mule gimmers was brought out by Mr G Wilson, Glenhead, Girvan and went on to realise £154, while the reserve went to WAF Cunninghame, Bellimore, Pinwherry which also fetched £154.
In the Mule ewe lamb section the champion pen was shown by R&M Dunlop and Son, Pinvalley, Barr, which sold for £131, while the reserve pen came from A Paton& Co, Craig, Straiton and went on to fetch £123.
The 1148 Mule gimmers averaged £137.45 (+£3.04 on the year), while 952 Mule ewe lambs levelled at £101.14 (-£6.51).
There were also 1148 store lambs forward with all classes slightly easier on the week.
Top price in this section was £63 for Oxford Downs, while Texels sold to £62.50 and Suffolks to £61.50, with the final average levelling at £57.06 (-£1.14 on the week).
The Cumberland and Dumfriesshire Farmers Mart sold 2182 prime lambs in Longtown on Thursday to a top of £93.50 per head and 210p per kg to average 174p (+9p on the week).
There were also 5,254 cast sheep forward when heavy ewes sold to £128 for Texels and averaged £74.56 (-£3.64), while light ewes peaked at £84 for Cheviots and levelled at £41.36 (+£1.54). Rams sold twice to £200 for a Suffolk and a Texel, and averaged £96.11 (+£12.90).
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