Arla's price for its British farmer suppliers for September 2024 will increase for both conventional and organic milk, the co-op has confirmed.
The Arla on-account price for conventional and organic milk with both increase by 0.89p per litre from 1 September.
This means the UK manufacturing price for conventional milk will increase to 43.33ppl and organic milk to 54.20ppl.
Arla Foods amba board director, Arthur Fearnall said the outlook was 'stable' and 'slightly positive' for the sector.
"Commodity markets are increasing, driven by fat heavy products, especially butter.
"The increase is driven by strong demand and additionally fuelled by the low seasonal milk intake and limited availability of fat in the EU."
Paul Dover, Arla's UK agricultural director added: “This week we announced our half-year results, and we are pleased to have delivered a robust performance, driven by the efforts of our farmer owners and employees.
"The result of this has been renewed investment in our brands and infrastructure in the UK, driving a consistently competitive milk price, which has paved the way for enhanced sustainability efforts going forward.”
Meanwhile, UK processor First Milk recently announced that its milk price will increase by 1 pence per litre for September.
And dairy processor Muller unveiled a milk price rise of 1p per litre for its farmer suppliers, starting from 1 October.