Danish

Danish dairy cooperative Arla Foods reduced purchase prices for farmers by 2 cents to 35 cents per 1 kg of milk. The changes will take effect from September 29, 2014. This is stated in the message of the company.

"China's demand (for dairy products - as amended) remains sluggish, and the Russian ban on imports continues to affect the pricing of European industry. This negative pressure significantly affect purchase prices Arla milk", - commented on the change of the head of service of the members of the cooperative Arla Foods UK Ash, Amirahmadi.

According to him, global milk production in 2014 increased by 4-5%, while global demand is only 1-2%.

"This imbalance has led to an increase in inventories and, as a result, have fallen sharply markets", - concluded Amirahmadi.

The day before it was reported that a new Zealand company Fonterra also announced about decreasing purchase prices for milk, Executive Director of the largest exporter of dairy products in the world new Zealand company Fonterra - Theo spearing September 24 estimated surplus of milk on the world market due to the Russian embargo 2.2 million tons. According to him, this has led to falling milk prices by 40% compared with 2013.

Consequently, Fonterra also lowered its forecast payout to farmers for 1 kg of dry matter of milk by 12% to $4,30 USA for the 2014-2015 season.

Arla Foods, a Danish dairy cooperative. It includes almost 12.3 thousand farmers from Denmark, Germany, Sweden, Belgium, Luxembourg and England, which owns shares of the company. Cooperative profits from the processing and sale of dairy products and distributes it among the participants in the form of a fixed payment of delivered milk (purchase price) and the Supplement according to the results of the completed year, which is formed from the profits of the company (payment for the year, kind of dividends).

Arla annually recycles approximately 10.4 million litres of milk. About 43.4% of turnover per segment accounted for fresh dairy products and 25.5% for cheese. Arla Foods belong brands Arla, Apetina, Natura, Castello and Lurpak. By the end of 2013, the company's turnover amounted to almost 9.9 billion euros (73,6 billion DKK), the income of 296 million euros (2.2 billion Danish kroner).