Arla raises August milk price past 50ppl barrier

The Arla on-account prices for conventional and organic milk will increase from next month as on-farm costs continue to rise
The Arla on-account prices for conventional and organic milk will increase from next month as on-farm costs continue to rise

Dairy co-operative Arla has announced a further milk price increase from August, breaking the 50 pence per litre barrier.

From 1 August, there will be an increase of 90p per litre to the Arla on-account price for conventional milk and 0.90ppl rise for organic.

This will increase the farmgate milk price for the standard manufacturing litre to 50.35 ppl for conventional and 56.01 ppl for organic milk.

The price increase comes as UK inflation sits at a 40-year high, with farmers continuing to face surging costs for feed, fertiliser and fuel.

Arla Foods amba board director, Arthur Fearnall said the continuing on-farm cost pressures for feed, fertiliser and fuel had been 'further exasperated' over the last month due to the extreme dry weather.

"Commodity prices have weakened in recent weeks however, they still remain at a high level. The outlook is stable," Mr Fearnall said.

Paul Savage, agriculture director for Arla UK added: “As a cooperative, it is vital that we continue to support our farmer owners during this significant inflationary period.

"On-farm cost pressures continue to dampen the overall supply of milk across Europe and the extreme dry weather has added extra pressure to our farmer owners and consequently, their on-farm costs.”