Arla is increasing its conventional milk price for June by 1.15 pence per litre.
The increase will take Arla’s standard litre price to 28.58 pence.
Commenting on Arla’s decision to increase its milk price, Arla Foods amba board director, Johnnie Russell said the start of the year has been "challenging".
“I am confident that this milk price increase will be welcomed by our farmer owners who have faced difficulties through unforeseen, extreme, conditions in the winter and early spring," Mr Russell said.
“The increase has been possible due to the strengthening of the markets. Although weather conditions are now improving, the long cold spring in some areas reduced output leaving commodity markets short of product.
“This, coupled with increased export demand and strong European demand, has pushed prices higher, particularly in cheese and butter, while SMP prices have been slightly stronger than expected," he added.
