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Arla ups milk price for dairy farmers

Losses narrowed at Arla last year.
Losses narrowed at Arla last year.

Dairy farmers supplying Arla are set for an increase in the price they get paid for their milk on Monday.

The European farmers’ co-operative, which has around 3,000 owner members in the UK, will increase its standard litre price by 0.83p to 25.8p a litre. The dairy’s head of milk and member services in the UK, Ash Amirahmadi, said: “The markets have shown an upward trend recently, in particular due to a reduction in milk production in parts of Europe and New Zealand.

“Global Dairy Trade auction prices reduced in the last auction and, consequently, there is uncertainty as to whether the positive trend in 2015 is sustainable. The impact of the abolition of quotas post April will be a key factor in this.”

The price increase offers a glimmer of hope for the dairy sector, which in recent months has been hit by low prices.

Earlier this week the Scottish Government launched an action plan to help the sector. It sets out no short-term fix for the sector’s woes but long-term goals for the future.

The plan focuses on five key areas – market development, promoting best practice in dairy farming, promoting a transparent and efficient supply chain, supporting First Milk in transforming its operation in Scotland and getting the international rules right.

In January the Press and Journal launched a campaign to help struggling dairy farmers. The campaign, which has been backed by local producers, calls on members of the public to buy more British and Scottish dairy produce.