Milk tanker leaving Arla depot©Rex/Shutterstock

The UK’s largest dairy company, Arla, has raised its standard litre milk price by 2.00 euro cents/kg (1.49p/litre) to 23.14p/litre for November. 

The increase, which will affect Arla’s 2,700 UK-based producer-owners, is the processor’s third consecutive rise and will mean prices will have risen by 4.09p/litre in three months.

See also: Lessons and advice from the dairy downturn

Higher farmgate prices have been driven by stronger market returns. However, with sterling continuing its slide against the euro due to ongoing concerns over Brexit, the farmgate return is worth 0.11p/litre less than last month’s identical rise of 2.00c/kg.

“While the price is still not where it should be to be sustainable, it is a further positive move for our farmer owners,” said Arla Foods UK managing director Tomas Pietrangeli.

“We continue to work with our UK customers in a pragmatic way to secure the much-needed market returns for our farmer owners.”

He added, “This involves remaining focused on driving dairy consumption and value for consumers in our new Arla-branded innovations.”

Arla foods is owned by 12,700 dairy farmers across Europe and produces brands such as Anchor and Cravendale. It is the UK’s largest cheese manufacturer.