The authoritative independent voice of the UK food industry

The authoritative independent voice of the UK food industry

News

Arla Foods warns of shortages unless farmers are paid more

25 Mar, 2022

Managing director of dairy giant Arla Foods Ash Amirahmadi has warned that rising production costs means farmers can no longer cover their expenses.

Interested in reaching the food industry?

Explore our media pack for all of our advertising opportunities and partnership options.

Managing director of dairy giant Arla Foods Ash Amirahmadi has warned that rising production costs means farmers can no longer cover their expenses.

Arla Foods is the fifth biggest dairy company in the world and the largest supplier of fresh milk and cream in the UK. The co-operative has 2,100 dairy farmers in the UK and 8,950 across Europe.

Amirahmadi said that the recent increases in price for feed, fuel and fertiliser have soared, impacting on their farmers’ cashflow. He added that farmers are producing less milk because of the higher costs.

Over the past seven years, farmers have been producing more milk than called for, however, February saw them produce 2% less and in March 4% less.

With cost increases of some 36%, Amirahmadi warned farmers are facing some hard decisions and that they need confidence to carry on producing.

He said: “The most important thing now is that we put our arm around the farmers […] and pay our farmers more to cover their costs to make sure the milk is flowing.”

According to Amirahmadi, the price of milk in the shops is 7% lower now than it was 10 years ago in real terms.

He said that for too many years the milk market has been failing to deliver for farmers in the UK. He explained: “Over the next five years we will have to make some tough decisions about where our milk goes to ensure farmers can cover their costs and continue to invest in reducing their on-farm emissions.

“The profitability of some of our milk contracts will need to increase significantly when up for renewal in order to compete with more attractive business opportunities that are opening up.”

Latest News

Pip & Nut achieves £26.4m revenue

Food brand Pip & Nut has reported a 50% increase in revenue on the year as it moves into operating profit for the first time.

Celebrating inspirational women in the meat industry.

Order your tickets for the ceremony on 20th November 2026 at the Royal Lancaster Hotel, London

Everything you need to know about the Food Management Industry Awards can be found through our dedicated website.

Some of the leading companies that have participated in the Food Management Today Industry Awards...

The heat is on

The heat is on

Government failure to act now to support the UK’s whole food supply chain will have far-reaching consequences, says PTF director general Rod Addy.

Grocery retail’s next evolution: the rise of ‘sentient’ stores

The next competitive advantage in grocery retail won’t come from technology alone, but from stores that can turn live data into intelligence and action, says Toby Pickard, retail futures senior partner, IGD.

The heat is on

Government failure to act now to support the UK’s whole food supply chain will have far-reaching consequences, says PTF director general Rod Addy.

“Resilience is not an unlimited resource”

NFU acting Livestock Board chair Clare Wise calls for Government to step in to help farmers facing unprecedented pressures from drought, disease and rising costs.

Cheese shredding solutions by Urschel

Leading cheese processors rely on optimised dicing and shredding solutions supplied by Urschel.

The Multivac Total Offer: end-to-end lifecycle support

Streamline your operations with a joined-up approach to equipment, materials and service solutions from Multivac.

Revolutionise your sterilisation: how the Static Steriflow solves real production challenges

Interfood Technology talks to Food Management Today about the Static Steriflow, engineered for versatility and reliability in food production environments.

Sign-up for our newsletter and alerts

"*" indicates required fields

Name*

Which emails would you like to receive from us?

Please select an option*
* By subscribing or opting in to any communication you also give permission for us to send you occasional general information updates about this media portfolio. You can opt out or change your preferences at any time.