Arla announces milk price increase

Arla Foods has announced a 1pp/litre increase in its standard milk price, raising the price to 19.4pp/litre.

Arla Foods Milk Partnership’s 1600 members will receive the increase from 1 April.

Peter Walker, Arla’s director of food buying, said the increase was possible due to negotiations with their customers for them to pay more to cover increased farm costs.

Some increases had been achieved during March, and this money would be included in the forward price from 1 April, he added.

In a letter to producers, Mr Walker said Arla was working with Tesco to ensure the supermarket’s recent milk price increase reached its suppliers “at the earliest practical date.”

“Our target for completion of the project is three to four months,” he said.

The 1pp/litre increase from Arla follows an announcement by Robert Wiseman last week that it would increase the price it pays for milk.

All of Wiseman’s 750 suppliers are set to receive 19.38pp/litre for the milk they produce in April.

Dairy Crest confirmed its Dairy Crest Direct members who supply Sainsbury’s would receive the full 1.3pp/litre increase announced by the supermarket last month.