Co-operative Arla has announced a milk price increase from December, as dairy commodity prices continue to perform well.
The Arla on-account price for conventional and organic milk will increase by 3.0 euro cents per kilo from 1 December 2021.
This means that when applied to the standard manufacturing litre, its conventional milk price will increase to 36.68p per litre and 44.13 ppl for organic.
Arla Foods amba board director, Arthur Fearnall, said: “Pricing for all EU dairy commodities, especially butter, has continued the strong positive development in October.
"According to the retainment policy approved by the Board of Representatives in October 2021, the supplementary payment from the financial year 2021 is guaranteed at a minimum 1.5 €c/kg, while the consolidation is reduced to a maximum of 1.0 €c/kg.”
Ash Amirahmadi, managing director for Arla Foods UK, said the price increase was needed at a time of inflationary pressure impacting farmers' costs and milk production.
"We are working closely with our customers to secure the continuity of supply to meet demand leading up to Christmas as well as a continued supply of sustainable dairy into 2022 and beyond.”
It follows dairy processor Muller confirming a milk price increase for January 2022 as the sector faces 'increased inflationary pressure'.
Farmers who supply Medina Dairy will see a 3p per litre increase in its standard litre price starting from the new year.
Elsewhere, First Milk announced that its milk price will rise by 1 pence per litre with effect from 1 December 2021.