Arla's milk price for November 2021 will see an increase as European dairy commodities have 'continued to increase significantly'.
The price increase of 0.90p per litre from 1 November takes the co-operative's conventional milk price to 33.52p per litre.
Arla's organic milk price will remain the same at 40.98 per litre, the dairy company confirmed on Friday (22 October).
Arla Foods amba board director, Arthur Fearnall, said that pricing for all European dairy commodities - especially cheese - had 'significantly increased based on high demand and lower availability in September'.
"The increase in our conventional farmgate milk price will be welcomed by our farmer owners who are experiencing significant inflationary costs on farm at the moment.”
But he added: "The UK organic market has not yet returned to pre-covid levels, especially in foodservice."
Graham Wilkinson, group senior agriculture director at Arla Foods, added that the news would be a welcome increase for the co-op's farmers.
“We are keenly aware that cost inflation is hitting all our farmers now in a way we haven’t seen in many years," he said.
"Whilst we are pleased to be able to announce an increase in our farmgate price, we can see that this will simply not be enough to cover the increase in longer-term costs that so many farms are now facing.
"It could pose a risk to our food supply and production in the UK unless the added costs are recovered in the market, and naturally this has our full focus in the weeks and months ahead.”