The Arla Foods amba on-account price for conventional milk will increase by 1.25 eurocents per kilogramme (1.01pence per kg), from 1 September.
When applied to the UK standard litre for conventional milk, the increase equates to an upward movement of one pence, taking it to 20.05 pence.
Commenting on the decision, Arla Foods amba board director, Jonathan Ovens, said: “This is welcome news for our farmer owners who continue to face challenging times on farm.Our increase will hopefully reaffirm their confidence in the dairy industry, after 18 months of falling prices.
“Commodity markets have continued to strengthen, as indicated by the increase in the latest GDT auction. This follows a significant downturn in milk production and increases in yellow cheese prices across Europe, while prices across European retail markets are also firming.”
Arla Foods is a global dairy company and co-operative owned by 12,700 dairy farmers with circa 2,700 of whom are British.
Dating back to 1881, Arla’s purpose is to secure the highest value for its farmers’ milk, while creating opportunities for their growth. With production facilities in 11 countries and sales offices in a further 30, Arla is the world’s fifth largest dairy company and largest supplier of organic dairy products. Arla has a total of more than 18,000 colleagues and its products are sold under the well-known brands Arla®, Lurpak® and Castello® in more than 100 countries.
Arla Foods UK is the largest dairy company in the country and is home to leading dairy brands Anchor®, Cravendale, and Lactofree® with a turnover of €2.9 billion. As well as being a leading supplier of fresh milk, number one in butter, spreads and cream, Arla is the UK’s largest cheese manufacturer. It has also built the world’s largest fresh milk facility located at Aylesbury and has plans for it to be the first zero carbon site of its kind. The UK business has a team of approximately 3,500 colleagues located at its dairies, distribution centres and head office.
