First increase in Arla milk price for months

MILK processing giant Arla has announced an increase to its on-account milk price for the first time in over six months.

Arla Foods has announced a slight increase in the price it pays to its dairy farmers for milk. Picture: Yui Mok/PA Wire

In a statement released this afternoon, the farmer co-operative confirmed that the Arla Foods amba on-account price was increasing by 0.5 eurocents per kg, with effect from September 28 which, when applied to the UK standard litre, gives a 0.38 pence positive impact.

But with October seeing a new quarter’s average exchange rate being introduced to the pricing mechanism, there was a 0.35 pence negative impact on the milk price.

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These two elements generate an overall 0.03 pence uplift in the milk price, taking the UK standard litre to 23.04 pence, Arla said.

Ash Amirahmadi, head of UK milk and member services, said: “As a result of improvements through the supply chain, including recent developments in GDT (Global Dairy Trade) auction prices, as well as initiatives from a number of our retail customers across Europe, our revenue has been positively impacted which is contributing to the first increase in Arla’s milk price for over six months.

“While this is positive, it is too early to confirm that the global market trend has reversed.”

Jonathan Ovens, Arla Foods amba board director, added: “We launched the farmer-owned marque last month and are delighted at the response we have received. Consumers can now easily identify and trust that when they buy dairy products, displaying the marque, they are responsibly sourced from a farmer-owned business where all the profits go back to our owners.”

The marque will be rolled out nationally on Arla branded and many retailer-own label dairy products in the coming months, he said.