ARLA has announced a farmgate milk price increase of 1.8 pence per litre on both its conventional and organic milk from March 1, 2022.

This increase, equivalent to two euro cents, will take Arla’s standard manufacturing litre to 39.38 ppl for conventional, and 46.83 ppl for organic milk.

Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: “This increase shows the strength of being part of an industry leading and European cooperative, supplying markets around the world. Global commodity prices continued the strong development in January enabling this milk price increase.

"However, our farmers continue to experience significant and sustained inflationary pressures on farm, at a time when they are also investing time and resources to ensure a more sustainable future. A positive outlook at this time will give them the confidence to continue this investment in their industry leading sustainability journey.”

Read more: Arla holds milk price at 37.58ppl for February

Agriculture Director for Arla Foods UK, Paul Savage, added: “The value of producing milk is continuing to increase like never before and the pressure continues to mount for our farmer owners. This increase will no doubt be welcomed, however, these sustained inflationary costs and those of ensuring and investing in industry leading standards in animal welfare and sustainability, mean milk can no longer be treated like a basic commodity.

"These pressures are being felt everywhere and it continues to challenge not only short-term on farm operations, but also their longer term investments and costs.”