ARLA have taken a major lead in the farmgate milk price stakes, announcing an increase that will take the farmer-owned co-op's standard price to just a fraction under 48 pence per litre.

From June 1, there will be an increase of 5 eurocents per kg to the Arla on-account price for both conventional and organic milk. In the UK, this will increase Arla’s farmgate milk price for a standard manufacturing litre by 4.49ppl to 47.79 ppl for conventional milk, and 54.34 ppl for organic milk.

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Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: “In parallel with the rising costs of living in the UK, on-farm running costs continue to increase dramatically. I’m sure many of my fellow farmer owners will be grateful for this significant increase in our farmgate milk price which, will allow many farmers to make some longer term operating and supply-chain decisions.

"EU dairy commodity prices for Yellow cheese and butter have begun to stabilise but remain at a high level. The outlook is stabilising.”

Agriculture Director for Arla UK, Paul Savage, added: “With UK inflation at a 40-year high, our farmer owners continue to face rapidly increasing costs for feed, fertiliser and fuel. This substantial increase in our farmgate milk price is a necessary measure to help our farmer owners cover costs so the UK’s milk supply can continue to flow, while also prioritising sustainability and animal welfare on farm.”