Arla Foods has increased the price paid to its farmer suppliers by 0.85p/litre from this month.
The increase has been added to the base price from 1 October, but the processor said extra money would be available to those suppliers who met higher milk quality criteria.
It has added 0.50p/litre to the payment for cell counts less than 250,000 and 0.50p/litre to a new top band for bactoscans less than 30,000. The new standard litre price, including the Morrisons and Cravendale premiums of 0.25p/litre each, will be 28.85p/litre from 1 October.
In addition, Arla said 0.15p/litre would be added through increased butterfat payments from 1 December, taking the total standard litre increase available to 2p/litre.
Arla’s announcement was the latest in a series of autumn milk price increases by the leading processors. Below is a summary of the main announcements:
• Robert Wiseman Dairies: 1.85p/litre increase from 1 October (taking standard litre to 28.42p/litre) + changes to quality criteria in pricing schedule
• Dairy Crest: +1.85p/litre from 1 October – 1.25p on base price, plus another 0.6p if quality criteria met (28.6p/litre). 1p/litre milk&more bonus extended for six months
• Milk Link: +1p/litre from 1 September (28p/litre)
• First Milk: +1.5p/litre for liquid pool (27.9p/litre) and +1p/litre for cheese and balancing pools (27.5p/litre)
• Meadow Foods: +1.67p/litre from 1 October (28.38p/litre)
• Tesco: +0.43p/litre from 1 October for cost-tracker contract (30.21p/litre)
• Arla Foods: +0.85p/litre from 1 October (28.85p/litre – including supermarket premiums)