The Russian import ban has led to the milk flowing in Northern Europe.
Arla lower milk price paid to farmers in the new year and does not rule out more cuts.
Arla pay from January 2.65 per kilo of milk, down 19.5 cents. Arla management has already warned of a cut, but it now becomes greater than previously expected.
– We have a large increase in milk production in the world that puts pressure on prices. Russia’s ban on imports of agricultural products from the EU also puts pressure on the whole market, while China almost completely left the international market and almost do not import anything anymore, says Arla’s press officer, Claes Henriksson.
– These effects has struck harder against Arla than we thought just a few months ago, says Henriksson.
But despite mjökbönderna receive less compensation dare Arla not promise any reduction in prices of milk and cheese in the Swedish food stores.
– Of course puts this press even in the retail market in northern Europe, but ultimately it is trade that sets the price, says Henriksson.
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