Arla announces October milk price rise

Arla, the UK's largest dairy company, will increase its milk price from 1 October 2020
Arla, the UK's largest dairy company, will increase its milk price from 1 October 2020

Arla’s milk price for October will rise to 29.76 pence per litre as the current market outlook 'remains stable', the co-op has confirmed.

On-account prices for conventional and organic milk will increase by 0.5 euro cents per kilo from 1 October 2020, the British co-operative said.

This month is also positively impacted by a 0.06 p/kg, quarterly currency adjustment bringing in a total increase to 0.50 pence per kilo.

When applied to the manufacturing price, Arla’s pence per litre for conventional milk will be 29.76 pence and the organic price 38.12 ppl for farmer suppliers.

Arla Foods amba board director, Arthur Fearnall said the current market outlook remained stable.

"Commodity market prices have remained relatively stable over the last few months, with the recent positive GDT more the result of contract prices for next year increasing to current market prices, rather than any general positive market development."

Graham Wilkinson, UK agriculture director at Arla said it was important to recognise that while the commodity markets overall remained relatively stable, the UK continued to navigate through Covid-19 uncertainty.

"Across Arla we have worked tirelessly throughout the pandemic to ensure we played our part in feeding the nation, from farm to fork," Mr Wilkinson said.

"Right now, as we face in to toughening of personal restrictions once again, our contingency plans are in place and we are working hard to minimise any potential disruption for our customers.”

Arla farmers are paid on constituents via a manufacturing schedule. For ease of comparison, the liquid price is 28.66 pence per litre based on 4% fat and 3.3% protein.

Manufacturing price based on every other day collection, top quality, one million litres,4.2% butterfat, 3.4% protein.