Arla's price for conventional and organic milk for March 2024 will increase by 0.88p per litre as the outlook remains stable.
This means the UK manufacturing price for conventional and organic milk will be 40.06ppl and 47.38ppl respectively.
Paul Savage, agriculture director for Arla UK, said the outlook for the sector was currently stable.
“It is pleasing to see that both the conventional and organic markets continue to pick up," Mr Savage said.
"As we move through the first quarter of 2024 a stable market outlook will be welcomed by our farmer owners.”
Arla Foods amba board director, Arthur Fearnall, explained that while global milk supplies continued to decline, increases were being seen in some areas.
He noted that EU milk supplies were projected to grow due to the expected seasonal increases in the spring.
"European commodity markets remain stable or going slightly down and global commodity markets have increased lately," Mr Fearnall said.
"Our retail sales continue to pick up. The outlook is stable."
