Arla increases September milk prices by 1ppl

The September amba on-account price will increase by 1ppl
The September amba on-account price will increase by 1ppl

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 it is "welcomed news" for 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," Mr Ovens said.

"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.