Arla's price for its British farmer suppliers for October 2024 has increased for both conventional and organic milk, the co-op has confirmed.
The Arla on-account price for conventional and organic milk has increased by 1.69p per litre, which came into effect from 1 October.
This means the UK manufacturing price for conventional milk will increase to 45.02ppl and organic milk to 55.89ppl.
Arla Foods amba board director, Arthur Fearnall, said that commodity markets were continuing to increase, driven by fat heavy products, especially butter.
"The increase is driven by the strong demand and additionally fuelled by the current lower milk volumes traditionally associated with this time of year and limited availability of fat in the EU."
Mr Fearnall added: "Overall, the outlook is slightly positive."
Paul Dover, Arla's UK agricultural director, said the co-op was pleased to be able to pay a higher milk price in October.
However, its recent survey showed that the majority of producers were finding it more difficult than ever to maintain and improve their productivity on farm due to labour shortages.
He said: "We’re calling on the new government to invest in developing the skills farmers need on-farm, as well as to act on promoting farming as a high-skill and desirable industry in schools and universities."
Meanwhile, UK processor First Milk recently announced that its milk price will increase by 1.25 pence per litre, from 1 November.
And dairy processor Muller unveiled a milk price rise of 1p per litre for its farmer suppliers, also starting from next month.
