The dairy processor Arla Foods announced a substantial milk price rise of 1.4p/litre for both conventional and organic producers.
The rise from April 1 takes prices to 31.43p/litre for conventionally produced milk and 39.79p/litre for Arla’s organic producers. Prices are based on collection every other day in the top quality band and a 1m litre annual supply at 4.2 per cent butterfat and 3.4 per cent protein. Applied to a standard litre at 4 per cent fat and 3.3 per cent protein, the price equates to 30.24p/litre.
Arthur Fearnall, an Arla Foods amba board director and farmer-owner, said the rise reflected a significant uplift in commodity market prices in the past month.
“Strong Chinese demand has driven global powder prices, with lower milk production in Europe increasing butter and cream prices here,” he said.
“As a result, cheese buyers have had to increase their prices to secure their supply. The current outlook is stable, with the potential for further positive development.”
Alice Swift, Arla’s UK agriculture director, hailed the work farmer members were doing to boost environmental credentials via the co-op’s Arlagarden Plus and Climate Checks initiative.
“Consumers are looking for brands which have sustainability at their core and sustainability requires investment, so giving our farmer-owners the confidence to invest for the future is important.”
Last month, Arla’s conventional milk price increased to 30.03 pence and organic milk increased to 38.39 pence per litre for Arla’s farmer owners