Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: “There has been a significant increase in commodity market prices across all categories in the last month. Strong Chinese demand for WMP has driven global powder prices, with lower milk production in Europe increasing butter and cream prices here.  As a result, cheese buyers have had to increase their prices to secure their supply. The current outlook is stable, with the potential for further positive development.”

Alice Swift, UK Agriculture director at Arla continues: “This increase shows the strength that comes from being part of a leading European cooperative, delivering a strong brand proposition and working together to build a more sustainable future for dairy. We are proud of the work our farmer owners are doing to lead the sustainability agenda, their commitment to Arlagarden Plus and our world leading Climate Checks. Consumers are looking for brands which have sustainability at their core and sustainability requires investment, so giving our farmer owners the confidence to invest for the future is important.”

As planned Arlagården Plus is now a mandatory part of Arlagården, therefore the previous Arlagården Plus addition of 1.0€c/kg has been removed and the 1.0€c/kg is now being added to the raw milk value, meaning that this change has no impact on the Arla on-account manufacturing standard price.