Arla UK has decreased its June milk price by 0.4p per litre despite the company holding prices for the rest of its 9,500 producers in Europe.
This takes the manufacturing standard litre to 27.73 pence for its 2,500 UK producers.
Commenting on the UKAF Board’s decision, Johnnie Russell, Arla Foods amba board director, said: “Last month Arla Foods amba reduced its price by one euro cent but the UKAF board made the decision to manage the impact of this cut through the UKAF cash flow, for the month of May, and held the price to prevent a double impact of a milk price reduction, at the same time as maximum seasonality deductions.
“However, the UKAF board believes that it is necessary to make a small downward adjustment to the milk price, from 1 June, of 0.4 pence per litre, to re-balance the cash flow.”
Arla Foods is transitioning to a manufacturing schedule only with effect from 1 January 2018, where Arla farmers will be paid on constituents.
