Dairy co-operative Arla has announced a milk price increase from June as farm running costs 'increase dramatically'.
From 1 June, there will be an increase of 4.49 pence per litre to the Arla on-account price for both conventional and organic milk.
This will increase the farmgate milk price for the standard manufacturing litre to 47.79 ppl for conventional and 54.34 ppl for organic milk.
With UK inflation at a 40-year high, farmers continue to face rapidly increasing costs for feed, fertiliser and fuel.
Announcing the increase, Arla Foods amba board director, Arthur Fearnall, said that in parallel with the rising costs of living in the UK, costs for farmers were also surging.
"I’m sure many of my fellow farmer owners will be grateful for this significant increase in our farmgate milk price which, will allow many farmers to make some longer term operating and supply-chain decisions.
"EU dairy commodity prices for Yellow cheese and butter have begun to stabilise but remain at a high-level. The outlook is stabilising.”
Paul Savage, agriculture director for Arla UK added: "This substantial increase in our farmgate milk price is a necessary measure to help our farmer owners cover costs so the UK’s milk supply can continue to flow, while also prioritising sustainability and animal welfare on farm.”
First Milk announced earlier this month a 2 pence per litre increase to its member milk price for June 2022.
Dairy farmers supplying Muller who meet the conditions of the processor's Advantage scheme will also see a milk price increase from June.