Dairy co-operative Arla has announced a milk price increase for October but it will be impacted by poor currency exchange rates.
There will be a rise of 0.55 per litre (1 euro cent/kg) to the Arla on-account price for conventional milk.
However, due to a weaker pound sterling, Arla's quarterly currency exchange rate adjustment will negatively impact the price by 0.33 ppl.
It means from 1 October, the co-op's farmgate milk price for the standard manufacturing litre will stand at 50.91 ppl for conventional.
Meanwhile, Arla's price for organic milk will remain unchanged but will also be impacted by currency exchange rates, the co-op said.
Arla Foods amba board director, Arthur Fearnall said: “This months’ increase to our farmgate milk price for conventional milk comes following yet another rise in European commodity prices."
But he said in the organic market, at the current high pricing levels, organic demand was under pressure.
"Nonetheless, it is reassuring to see a stabilisation in the overall supply of milk across Europe. The outlook is stable.”
Paul Savage, agriculture director for Arla UK added: “There is no doubt that the organic market continues to face challenges as consumers trade down in the light of the sustained inflationary pressure.
"However, we continue to monitor these developments and remain committed to supporting the products our organic farmers work hard to produce.”
