Dairy co-operative Arla has announced a milk price increase from November as production prices continue to rise to 'unprecedented levels'.
From 1 November, there will be an increase of 1.33p per litre to the Arla on-account price for conventional milk and 0.43ppl rise for organic.
This will increase the farmgate milk price for the standard manufacturing litre to 52.24 ppl for conventional and 57.02 ppl for organic milk.
Paul Savage, agriculture director for Arla UK, said the price of production for dairy, including prices for feed, fuel and fertiliser continued to rise to "unprecedented levels".
"While the European organic milk market remains challenging, I am pleased that we have been able to work with our customers to secure further increases to support our farmers through these challenging times.”
Arla Foods amba board director, Arthur Fearnall added: “While European commodity prices have been stabilising over the last month they remain at a high level and as we approach the winter months, this latest increase to both our conventional and organic milk price is certainly welcome.
"Global milk supply levels have also been stabilising. The outlook is stable, albeit with a certain level of uncertainty.”
It comes after First Milk announced a milk price increase of 0.3p per litre from 1 November.
This will take its milk price on a manufacturing standard litre to 49.69p per litre, including the member premium.
