Arla increase milk price by less than a penny

Arla foods has increased its milk price by 0.76p/litre (1 euro cent/kg) taking its standard liquid price to 27.07p/litre.

Producers on manufacturing contracts of 4.2% butterfat and 3.4% protein, will get 28.16p/litre.

See also: Global dairy production at three-year low

The rise is the co-op’s sixth in succession and means prices for its 2,700 farmer owners have risen 42.3% since the lows of the dairy crisis back in June, when prices stood at 19.12p/litre.

However, this rise is also the smallest of Arla’s increases in the previous six months, as spot milk prices reduce and UK supply shows signs of creeping back upwards.

“Markets in general remain strong, with good global demand,” said Arla Foods amba board director, Johnnie Russell. 

“As a result of the mild winter, global milk supply is slightly above expectations, which is softening butterfat prices.

“Yellow cheese prices have also weakened across Europe over the last few weeks.

“Between September to date our price increases have delivered in the region of an additional £51m of income to our British farmer owners and, in turn, the rural economy.”