British dairy farmers who supply Danish Co-operative Arla are to receive a 0.03ppl increase in farmgate price for the milk they produce.

Arla’s announcement on Tuesday means the Co-op’s standard litre price will rise to 23.04ppl. The European increase is 0.5 €/c which converts to 0.38ppl. Their quarterly currency smoothing mechanism brings the price down 0.35ppl this month leaving the UK increase as 0.03ppl.

Commenting on the decision, Ash Amirahmadi, head of UK milkand member services, said, ”As a result of improvements through the supply chain, including recent developments in GDT auction prices, as well as initiatives from a number of our retail customers across Europe, our revenue has been positively impacted which is contributing to the first increase in Arla’s milk price for over six months.

”While this is positive, it is too early to confirm that the global market trend has reversed.”

The rise was welcomed by farm unions, with the NFU praising the “constructive move” by Arla.

NFU Dairy Board Chair Rob Harrison said, “This price announcement by Arla is encouraging, despite being severely tempered by the decrease in the currency mechanism for UK farmers. This is testament to all the hard work we’ve seen in recent weeks in lobbying UK and European retailers which I believe is starting to make a real difference, but will not solve the current crisis alone.
 
“It is still an extremely tough time for dairy farmers as we move into the autumn and this upward movement must continue if dairy farms are to survive the winter. So today I urge Arla and other UK milk buyers not to take advantage of distressed sellers on the market.  All milk buyers need be taking note and finding ways to add value to the supply chain if we are to see a sustainable dairy sector.”