Dairy farmers supplying Arla via the Arla Foods Milk Partnership (AFMP) are set for a 1.5p/litre milk price increase from 1 November.
This brings the standard litre price for the group, which comprises about 1,250 farmers, up to 33.13p/litre.
Last week, Arla confirmed it had increased the milk price paid to Arla Milk Link farmers – UK owners of the EU dairy farmer co-operative – by 0.74p/litre to 33.05p/litre.
AFMP members have been offered the chance to become full co-owners of the co-op from 1 January 2014.
“The increase to our owners (AML) and AFMP members is possible due to Arla being able to recover the money from the marketplace and is in line with the co-operative’s commitment to pay a competitive market price. We thank our customers for their support,” said Arla Foods UK head of milk and member services Ash Amirahmadi.
Last week, most processors announced milk price rises for October and November, however advisers warned production costs had outstripped the rises amid calls for prices to reach 35p/litre. Farm lobby group Farmers For Action said it would be shifting its focus to securing further price rises for farmers in November.