From 1 June 2022, there will be an increase of 5.0 €c/kg to the Arla on-account price for both conventional and organic milk.

This will increase Arla’s farmgate milk price for the standard manufacturing litre by 4.49 pence per litre to 47.79 ppl for conventional and 54.34 ppl for organic milk.

Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: “In parallel with the rising costs of living in the UK, on farm running costs continue to increase dramatically. I’m sure many of my fellow farmer owners will be grateful for this significant increase in our farmgate milk price which, will allow many farmers to make some longer term operating and supply-chain decisions. EU dairy commodity prices for Yellow cheese and butter have begun to stabilise but remain at a high-level. The outlook is stabilising.”

Paul Savage, Agriculture Director for Arla UK continues: “With UK inflation at a 40-year high, our farmer owners continue to face rapidly increasing costs for feed, fertiliser and fuel. This substantial increase in our farmgate milk price is a necessary measure to help our farmer owners cover costs so the UK’s milk supply can continue to flow, while also prioritising sustainability and animal welfare on farm.”