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Arla in milk price crisis talks with Swedish farmers

24-Aug-2012

Danish dairy co-operative Arla Foods has been involved in crisis talks with Swedish farmers following a number of milk price cuts in the country.

According to reports, Arla has slashed the price it pays to dairy farmers for their raw milk five times in the last year – citing a reduction in global market prices.

Price cuts have taken farm gate milk prices (FGMP) well below the cost of production.

The crisis in Sweden follows a similar situation in the UK, where raw milk price reductions were announced across the board by processors, including Arla.

However, following a number of high-profile demonstrations by dairy farmers, processors including Arla, Robert Wiseman Dairies and Dairy Crest agreed to delay their planned price cuts while talks with farmers were on-going.

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