Arla's milk price for October 2021 will see an increase amid a 'stable outlook' along with increased prices for European dairy commodities.
The price increase of 0.32p per litre takes the co-operative's conventional milk price to 32.62p per litre and 40.98 per litre for organic milk.
Arla Foods amba board director, Arthur Fearnall, said that pricing for all European dairy commodities - especially cheese - had significantly increased based on high demand and lower availability during August.
"A shift in global demand from China to Asia and Middle East is supporting positive development in global milk powder prices," he said.
"European milk intake in July declined, while the August figures indicates no change to last year. The outlook is stable."
Ash Amirahmadi, managing director Arla UK, added that the news would be a welcome increase for the co-op's farmers.
"At the same time as experiencing inflationary costs on farm, [they] are proud of the work and the investments they are making to lead the on farm sustainability agenda."
This month saw a price reduction of 0.90p per litre amid rising inflation across its global supply chain.
