Arla has confirmed manufacturing prices for conventional and organic milk will remain unchanged for December 2020, at 30.66ppl and 39.02ppl respectively.

Arla Foods amba board director, and farmer owner, Arthur Fearnall, said global milk volumes were continuing to show year-on-year growth of approximately one per cent, and the impact of the second wave of Covid-19 was being felt in the markets.

“Last week’s global powder prices were weaker than expected, with prices being negatively impacted by aggressive pricing from the US and, for the first time, active exports from India,” Mr Fearnall said.

“In Europe, the renewed lockdowns are beginning to influence demand for cheese as food service is once again hit, with buyers becoming more hesitant to reduce prices.

“Due to the uncertainty arising from the latest Covid-19 situation and the continued lack of clarity around Brexit, the current outlook is uncertain with the potential for negative developments.”

Alice Swift, UK agriculture director at Arla added the cooperative had worked tirelessly throughout 2020 to prioritise the safety of colleagues and delivery for customers and were once again having to adapt and move quickly to meet changing consumer demands.

“We have learnt many lessons this year, which have stood us in good stead to manage the quick changes required,” Ms Swift said.

“I would like to thank all our farmers and our colleagues for their continued support and dedication in ensuring that we continue to feed the nation.”