Farmers who supply Arla will see a May milk price increase for both conventional and organic milk, the co-op has confirmed.
The on-account milk price for conventional will increase by 0.45ppl and organic milk where the milk price will increase by 1.34 ppl.
This means the UK manufacturing price for conventional milk will increase to 40.45ppl and organic milk to 49.98ppl.
Arla Foods amba board director, Arthur Fearnall, said the outlook for the sector was currently stable.
“Global milk supplies continue to be slightly lower, retail sales continue to rise and commodity markets are stable.
"In the UK, the organic milk price increase is driven by growing demand. Overall, the outlook is stable.”
Arla farmers are paid on constituents via a manufacturing schedule. For ease of comparison, the liquid price is 38.80ppl for conventional milk and 47.95ppl for organic milk, based on 4% fat and 3.3% protein.
Manufacturing price based on every other day collection, top quality, one million litres, 4.2% butterfat, 3.4% protein.
It comes after dairy processor Muller announced a milk price rise for its farmer suppliers, starting from 1 June 2024.
