Arla Foods is raising its milk price to owners by a further two eurocents per kilogramme (1.49p per litre) from 1 December. This is the fourth consecutive increase since September.
When the increase to the on-account price is applied to the UK standard litre, it equates to a 1.49ppl rise in the milk price, which takes it to 24.63 pence.
Commenting on the decision, Arla Foods amba board director, Johnnie Russell, said: “European markets are continuing to strengthen, following the reduction in milk production and we are seeing further positive signals from our international markets, despite the continuing difficulties in the oil producing areas.
“Our December increase is the fourth consecutive rise in our conventional milk price, equating to an overall increase since 1 September of 5.58ppl.
“The outlook for the coming months remains positive. As a result, there will be a similar improvement in January 2017.”
Tomas Pietrangeli, managing director, Arla Foods UK, said: "We continue to work with our UK customers in a pragmatic way to secure the much needed market returns for our farmer owners."