Arla And First Milk Announce Price Cuts

Arla and First Milk have both announced producer price cuts with immediate effect.

Arla has dropped it's standard price by 2ppl from January 5 while First Milk has cut by 1.25ppl from January 1.

Arla blames the reduction on a falling commodities market, the effects of which it says it absorbed in the second half of 2008. Meanwhile First Milk blames the European milk price slide which it says is now affecting the UK.