Arla has increased its standard manufacturing litre milk price by 1.15p/litre from 1 June.
The rise means the 2,400 producers of the UK’s largest dairy co-op will receive 28.58p/litre for milk with a constituent content of 4.2% butterfat and 3.4% protein.
This equates to 27.51p/litre for liquid litres of 4% butterfat and 3.3% protein.
The upwards price movement is the co-op’s first substantial increase since October 2017, when Arla’s manufacturing litre was 13% higher at 32.3p/litre.
“After a challenging start to the year, I am confident that this milk price increase will be welcomed by our farmer owners who have faced difficulties through unforeseen, extreme, conditions in the winter and early spring,” said Arla Foods amba board director, Johnnie Russell.
“The increase has been possible due to the strengthening of the markets.”
Mr Russell said despite improving weather, the long cold spring in some areas reduced output leaving commodity markets short of product.
“This, coupled with increased export demand and strong European demand, has pushed prices higher, particularly in cheese and butter, while skim-milk powder prices have been slightly stronger than expected,” he added.