Britain’s largest milk processor has held the price it pays farmers amid the launch of a campaign to encourage consumers to buy more home-produced dairy produce.
European farmers’ co-operative Arla, which buys from one in four UK dairy farmers, is holding its milk price for November.
However, the firm, which produces Lurpak, Anchor and Cravendale, reduced the forecasted 2014 13th payment to 0.57 pence a litre as a result of changes to its retainment policy.
With effect from October 27, the standard litre price paid to UK farmers, including the forecasted 13th payment, is 28.47pence.
The 13th payment is paid to all farmer members of the co-operative at the end of March, based on the previous year’s milk price.
Arla’s head of milk and member services in the UK, Ash Amirahmadi, said: “Arla maintaining its milk price during November draws a line in the sand and creates much needed stability for our owners. However, the market environment continues to be challenging with ongoing pressure on prices on most markets.”
The price hold announcement came the same week the dairy giant launched a consumer facing campaign – Support Our Farmers – to boost sales of its products in the UK.
As part of the campaign, which features adverts with suppliers and owners of the co-op, producers are being given leaflets to distribute telling the public that by buying from Arla they can help farmers achieve a better price for their milk.
Mr Amirahmadi said: “We have consistently delivered a leading milk price for our farmers, but over recent months there has been significant pressure on the global milk market, where the price of milk paid to farmers is being squeezed.
“Due to our ownership structure, we are acutely aware of the impact this can have on our farmers as well as the wider dairy industry. We believe that the British public wants to help dairy farmers and we want to help them understand how buying Arla products benefits them directly.”