Arla Foods has reduced its standard price by two pence today taking it to 25 pence. First Milk had already reduced its price on 1 January 2009.
In a press release they state underlying trend within the commodity markets has been one of constant decline. Commenting on the decision, Hanne Søndergaard, deputy CEO of Arla Foods UK plc, with responsibility for milk procurement said: “We regret having to reduce our milk price to Partnership members. 2009 is, undoubtedly, going to be a tough year for many industries including dairy and I would like to reassure our members that both Arla and AFMP will continue to work for the best interests of members.”
AFMP Chairman, Jonathan Ovens, added: “While it is extremely disappointing that we are starting the new year with a price drop, Arla has presented a sound business case for a reduction, based on falling commodity returns, which the board has recognised.”
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