Arla Foods is to increase the milk price paid to its farmer suppliers by 2p/litre from 1 March.
The move follows a spate of recent price rises by other processors and takes Arla’s standard litre price to 26.5p/litre. It will apply to all Arla suppliers, apart from those in the separate Tesco supply group.
Jonathan Ovens, chairman of Arla Foods Milk Partnership, which represents the 1,400 members supplying 1.6bn litres of milk annually to Arla Foods, welcomed the news and said it demonstrated what could be achieved when farmers and processors worked together with customers.
“A lot of work has gone into this and I believe we’ve got the best price we can out of it. The increase demonstrates the structure we’ve got does work and does deliver for farmers.”
There have been a number of milk price increases recently, as processors have responded to relatively buoyant dairy commodity markets.