Arla milk tanker© Tim Scrivener

The UK’s largest dairy company, Arla, has raised its amba on-account price for conventional milk by 1p.

The farmer-owned co-operative will increase the price it pays its 2,700 UK farmers to 20.05p/litre from 1 September.

Arla is the latest in a line of milk processors to raise prices as weakened sterling, increasing global commodity prices and falling nationwide milk production have aided market recovery.

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The rise means Arla producers will still be receiving 4p/litre less than the same period last year.

“This is welcome news for our farmer-owners, who continue to face challenging times on farm,” said Arla Foods amba board director Jonathan Ovens.

“Our increase will hopefully reaffirm their confidence in the dairy industry after 18 months of falling prices.”

Arla’s announcement, accompanied by last week’s GDT index increase of 12.7%, is continued proof of a more positive market.