‘Currency smoothing’ to impact on Arla April milk price
Arla Foods has announced that its milk price for April will be negatively impacted by an adjustment in currency smoothing of 0.01p/L.
This adjustment will be in effect from April 1; this means that the group’s April price will be 30.23p/L for farmer owners.
“Arla Foods’ on account price for conventional milk price will remain the same for April 2019. However, this month it will be negatively impacted by a quarterly adjustment in the currency smoothing mechanism of 0.01p/L from April 1,” said a statement from the international co-operative.
When applied to the UK manufacturing price this will reduce Arla’s price per litre to 30.23 p/L for farmer owners.
Senior personnel within Arla have said that its prices have remained relatively stable, despite the uncertainty in the UK market.
“European milk volumes in most major countries are in line or slightly higher than this time last year and, as a result, markets have been quite and overall global prices remain relatively stable,” said Johnnie Russell, board director at Arla Foods.
“This has meant that overall, despite the current uncertainties in the UK market, we have been able to hold our price relatively stable,” he added.
Earlier this month, Arla announced its ‘Carbon Net Zero’ ambition, which aims to cut the company’s greenhouse gas emissions over the next 30 years.
The group is hoping to be ‘carbon net zero’ by 2050, and will begin by cutting its emissions by 30%/kg of milk by 2030.