The Arla on-account prices for conventional and organic milk will remain unchanged from 1 July 2021.

However, it will be negatively impacted by a quarterly currency smoothing adjustment of 0.03 pence per litre. This means that when applied to the standard manufacturing litre Arla’s milk price will be 33.20 pence per litre for conventional milk and 41.56 pence per litre for organic milk for Arla’s farmer owners.

Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: “Overall, commodity market prices have remained relative stable in May. Powder prices have increased, butter prices have weakened, and cheese prices have been stable. European milk intake has picked up with a small increases in April and May. The current outlook remains stable.”