Arla’s farmgate milk price is set to rise by 4.49p/litre from 1 June for a standard manufacturing litre.
This 10% price increase for members will lift prices to 47.79p/litre based on a standard manufacturing litre of 4.2% butterfat and 3.4% protein.
The manufacturing price includes the co-op’s current guaranteed minimum 13th payment of 1.349p/litre and assumes collection every other day.
The price is equivalent to a liquid value of 45.97p/litre based on 4% fat and 3.3% protein.
Producers on organic contracts with Arla will receive 54.34p/litre for a manufacturing standard litre from 1 June, an increase of 4.76p/litre.
Arthur Fearnall, Arla Foods amba board director and farmer-owner, 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 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,” he said.
Arla UK agriculture director Paul Savage highlighted that with UK inflation at a 40-year high, the co-op’s farmer-owners continued 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,” said Mr Savage.