Arla's price for conventional and organic milk for January will increase as the outlook remains 'stable' for the new year.
This means the UK manufacturing price for conventional and organic milk will be 37.58ppl and 44.61ppl respectively.
Paul Savage, agriculture director for Arla UK said: “Both conventional and organic markets are coming back to growth and our retail branded sales continue to improve.
"With a stable outlook, this latest and significant increase should give confidence to our farmer owners as we begin the start of a new year.”
Arla Foods amba board director, Arthur Fearnall said the news would be 'a good start to the new year' for the co-op's UK and European suppliers.
"Retail sales continue to pick up after the turnaround in quarter three in 2023," he said, adding that global commodity prices continued to recover as well.
However, he said they were slightly weakened after seasonal demands were fulfilled.
In Central Europe, Arla's organic on-account milk price will see a bigger increase - of 5 euro cent per kilogram - from 1 January 2024.
Mr Fearnall said: "This increase for organic is driven by the transition of the certification scheme to the organic association Naturland and following the increased profitability from retail positions. The outlook is stable.”
