This will increase Arla’s farmgate milk price for the standard manufacturing litre by 0.90 pence per litre (ppl) to 50.35 ppl for conventional and 0.90 ppl for organic, taking the organic milk price to 56.01 ppl.

Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: “As farmer owners, this further increase to our farmgate milk price for both conventional and organic milk is certainly welcomed. The continuing on-farm cost pressures for feed, fertiliser and fuel have been further exasperated over the last month due to the extreme dry weather. Commodity prices have weakened in recent weeks however, they still remain at a high level. The outlook is stable.”

Paul Savage, Agriculture Director for Arla UK continues: “As a cooperative, it is vital that we continue to support our farmer owners during this significant inflationary period. On-farm cost pressures continue to dampen the overall supply of milk across Europe and the extreme dry weather has added extra pressure to our farmer owners and consequently, their on-farm costs.”