From July 1, 2022, the Arla on-account price will increase by two eurocents per kg for conventional milk and one eurocent per kg for organic milk.

For UK producers, this will increase Arla’s farmgate milk price for the standard manufacturing litre by 1.66 pence per litre to 49.45 ppl for conventional and 0.74 ppl for organic, taking the organic milk price to 55.11 ppl.

The quarterly currency exchange rate adjustment will negatively impact the on-account price by 0.12 ppkg.

Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: “Over the last few months, we, as farmer owners, have been pleased to see a significant increase in our farmgate milk price for both conventional and organic milk. This is much-needed as our on-farm costs have seen drastic inflation in recent months. Commodity prices, which have been climbing, have now begun to stabilise although remaining at a high-level and we continue to see a decline in the overall milk supply across the EU. Nonetheless, the outlook for the future is stable.”

Agriculture Director for Arla UK, Paul Savage, continued: “In the UK, we continue to face a period of significant inflation which, in particular, is adding pressure to the UK Organic market overall. It is against this backdrop that we are pleased to have been able to secure this latest increase in the overall price for our organic milk.”