Arla’s farmgate milk price for members is set to increase to 43.3p/litre from 1 May for a standard manufacturing litre.
This is a rise of 3.58p/litre or 9% on the previous month’s level and includes the co-op’s current guaranteed minimum 13th payment of 1.349p/litre for milk on its standard manufacturing litre of 4.2% butterfat and 3.4% protein.
Arla farmers on contracts with Tesco will have a price increase of 3.45p/litre to 43.07p/litre, while Arla farmers on Morrisons contracts will see an increase to 42.63p/litre, according to milkprices.com.
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A standard liquid litre of 4% fat and 3.3% protein would deliver 41.65p/litre.
Prices will also increase in May for Arla’s organic manufacturing standard litre, rising by 2.68p/litre to 49.58p/litre.
Arthur Fearnall, Arla Foods amba board director and farmer owner, said: “There is no doubt that this is a significant increase in our farmgate milk price and, of course, it will be welcomed by our farmer owners who are experiencing ever-mounting cost pressures on farm.
“Pricing for all EU dairy commodities has continued to increase significantly, driven by conventional milk and products like mozzarella and yellow cheese.”
Arla agriculture director Paul Savage suggests the increase may give farmers more confidence to make short-term investment and operating decisions.
“However, on-farm costs continue to rise, with no signs of slowing. Therefore longer-term decisions, investments in our industry-leading standards in sustainability and animal welfare, as well as commitments to long-term feed and fertiliser contracts, can only come from farmer confidence in a sustainable farmgate milk price,” said Mr Savage.
