Arla Foods Milk Partnership members are set to receive an extra 0.4p/litre after Arla Foods UK announced an increase in the price it pays for its standard liquid milk.

AFMP members will see their milk price rise to 19.8p/litre from 1 June.

Peter Walker, Arla Foods director of milk procurement, said the increase was due to strengthening commodity returns, particularly butter and skimmed milk powder.

“In addition, as a result of our relationship with Asda and Tesco, from August around 60 per cent of our members will receive a significant further premium over the Arla base price,” Mr Walker said.

Jonathan Ovens, AFMP chairman, said following the acquisition of Arla Foods UK by Arla amba, AFMP members can expect further benefits in future

“I am encouraged by the progress made with the on-farm cost recovery, where Arla achieved a significantly greater increase than all other processors,” he said.

“We will continue to look for further opportunities to improve the position for all of our members.”