Dairy farmers supplying Arla will see milk prices rise towards the end of the year, following months of price falls and holds by UK milk processors.

Arla has increased its farmgate milk price in December by 0.89p/litre to 36.10p/litre for a standard manufacturing litre of 4.2% butterfat and 3.4% protein.

This is the first substantial price rise for Arla conventional producers in more than a year.

Organic producers supplying Arla will also receive a 0.89p/litre rise in October to 43.54p/litre.

Arla Foods board director and farmer Arthur Fearnall said: “This announcement is a step in the right direction for our co-operative business.

“Global milk supplies are slowing down in major production areas and retail sales continue to pick up after the turnaround in Q3. Global commodity markets are also recovering.”

January 2024

Meanwhile, Barbers Cheesemakers will increase its standard litre milk price in the new year by 1.03p/litre to 37.17p/litre, and Leprino Foods and Saputo Dairy will both increase by a penny in January to 35p/litre and 36.5p/litre respectively.

First Milk is set to hold its milk price at 36p/litre in January, while producers supplying Muller on direct contracts will continue to receive 36.5p/litre for a standard liquid litre of 4% butterfat and 3.3% protein.