Arla UK’s head of milk and member services Ash Amirahmadi said the challenging markets were caused by the prolonged impact of the high global milk supply and lack of demand.
He said: “The imbalance is having a material impact in all European markets, with a consequential impact on earnings across the entire dairy industry. Arla has taken mitigating actions to reduce the impact on our owner milk price but, ultimately, it is not possible for Arla to negate the impact of global markets.”Supply and demand not balancing. Someone should write a book.
“It is an incredibly difficult time for dairy farmers and the picture going into 2015 looks bleak. We need retailers to take a long-term look at supporting British farmers.”And someone should read one.
When the quantity brought to market exceeds the effectual demand, it cannot be all sold to those who are willing to pay the whole value of the rent, wages and profit, which must be paid in order to bring it thither. Some part must be sold to those who are willing to pay less, and the low price which they give for it must reduce the price of the whole. The market price will sink more or less below the natural price, according as the greatness of the excess increases more or less the competition of the sellers, or according as it happens to be more or less important to them to get immediately rid of the commodity.