A 0.9p/litre milk price rise has been announced for Arla Foods’ suppliers from January 2022.
When applied to the standard manufacturing litre (4.2% butterfat and 3.4% protein), farmers will receive 37.58p/litre from the co-op.
Meanwhile, organic producers will be paid 45.03p/litre.
The news comes off the back of an increase of just over 3p/litre for Arla members from 1 December 2021.
Arthur Fearnall, Arla Foods amba board director and farmer-owner, said: “Farmers countrywide are experiencing significant and sustained inflationary pressures on their everyday and longer-term on-farm costs. So, in a strong market where pricing for all EU dairy commodities has continued positively in November, this farmgate milk price increase will be welcomed by our farmer-owners. The outlook is stable to positive.”
Graham Wilkinson, senior agriculture director in Europe, said the festive period is a time when many consumers enjoy dairy and the co-op remained focused on ensuring continued supply among mounting external pressures, which it expects to run into 2022 and beyond.
“The cost of producing milk is increasing like never before, with on-farm expenses and premiums for ensuring a sustainable future for dairy, and it can no longer be treated like a basic commodity,” Mr Wilkinson said. “These pressures are being felt everywhere across the country.”