Arla's on-account price for conventional and organic milk will increase by 3.0 euro cents per kilo from December 1, 2021.

When applied to the co-op's standard manufacturing litre, this will take its conventional milk price to 36.68 ppl and its organic price to 44.13 ppl.

Arla Food UK's managing director Ash Amirahmadi, commented: “This record level of farmgate price increase is needed at a time of significant inflationary pressure impacting on-farm costs and milk production.

Read more: Arla Foods confirms November milk price increase

"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.”

Arla Foods amba board director, and farmer owner, Arthur Fearnall, added: “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.”