Arla lifts milk price by 1.76ppl as markets steady

Arla has lifted its conventional milk price by 1.76p per litre for May, taking it to 35.83ppl as global dairy markets begin to stabilise.

The increase offers a modest boost for farmers, with the co-op confirming its headline price for conventional milk will rise to 35.83ppl for May 2026.

In contrast, the organic milk price will remain unchanged at 56.31ppl, reflecting growing pressures within that segment.

The move comes as global milk supplies continue to expand and retail prices begin to settle following recent volatility. Commodity markets are also adjusting to shifting supply and demand, with prices reacting to wider market developments.

Across Europe, supply remains strong. Arla said the sector has “reached a balance in commodity prices”, pointing to a more stable pricing environment in the short term.

However, uncertainty continues to cloud the outlook. The co-op warned that conditions are “impacted by the geopolitical environment related to the Middle East”, leaving the overall picture neutral.

In the UK, the organic sector is showing signs of strain. While demand remains firm, supply is beginning to outstrip it, creating a growing mismatch. Arla said “the outlook is uncertain” for organic producers.

Elsewhere, First Milk has opted to hold its standard manufacturing milk price at 30.75ppl from 1 May, including its member premium. The move underlines a broader trend of stability across the UK dairy sector — at least for now.