Arla Foods amba board director, and farmer owner, Arthur Fearnall, said; “While commodity prices continued improving in February, and an increase in the farmgate milk price is welcome, we cannot get away from that fact that the cost of producing milk is continuing to increase like never before.

"The pressures on farm are ever mounting as our farmers owners try to balance continued significant inflationary costs, with ensuring and investing in industry leading standards in animal welfare and sustainability to meet consumer demand. These pressures are being felt everywhere and while a positive outlook is welcome, there are still some unknown impacts of the war in the Ukraine.”

Medina Dairy has announced it will increase its core Watsons milk price by 2ppl from May 1 2022 taking its liquid standard litre price to 39.8ppl. 

Sheazad Hussain, Medina Dairy chief executive, said: “We know that our farmers are continuing to be impacted by an unprecedented rise in on-farm costs, especially in relation to feed, fertiliser and energy.

“In the light of this, we are continuing to work hard to secure commensurate price increases from our customers.”