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Arla Foods amba is increasing its conventional milk price for August by one eurocent.

When applied to the UK manufacturing litre the increase equates to 0.88 pence per litre from 1 August, taking Arla's standard litre price to 31.38 pence. The increase has been possible again this month mainly due to the continued hot and dry conditions, which are having an impact on European milk production.

Commenting on Arla's decision to increase its milk price, Arla Foods amba board director, Johnnie Russell, said: "Given the impact of the continued challenging weather conditions on farm and milk volumes, this increase will be welcome news to our farmer owners. However, there is growing uncertainty in the commodity markets and strong supply in organic markets, particularly Germany and France, which continue to keep pressure on prices."