Arla's price for its British farmer suppliers for June 2024 will increase for both conventional and organic milk, the co-op has confirmed.
For June, the Arla on-account price for conventional milk will increase by 0.44p per litre, while the organic milk price will increase by 0.89ppl.
This means the UK manufacturing price for conventional milk will increase to 40.89ppl and organic milk to 50.87ppl.
Arla Foods amba board director, Arthur Fearnall said the outlook was 'stable' for the sector.
“Global milk supplies continue to be stable or slightly lower, retail sales continue to show growth and commodity markets are stable, however fat prices are increasing.
"In the UK, the organic milk price increase is driven by increasing profitability.”
Bas Padberg, Arla's UK managing director, noted that the milk price rise follows sustained period of good weather in the UK and across northern Europe.
Prior to this, he said there was unusually high levels of rainfall which had held back milk production.
Mr Padberg added: "Arla has also announced a series of new investments in UK production, including new spending and facilities at the Lockerbie, Stourton, Westbury and Aylesbury plants alongside the existing investment at Taw Valley.
"This brings total planned spend above £300m, an enormous vote of confidence in the potential and future of the UK dairy industry and Arla’s part in it.”
Meanwhile, dairy processor Muller has announced a milk price rise of 1p per litre for its farmer suppliers, starting from July.
Farmers supplying Muller who meet the conditions for the processor's Advantage scheme will receive a milk price of 39p per litre.
