Additional milk price rise for Arla producers

Producers supplying Arla Foods on direct manufacturing contracts will receive a further 0.9p/litre rise for a standard manufacturing litre in August.

This is on top of a 1.65p/litre increase that had previously been announced and puts prices up by 2.55p/litre on the previous month in total.

The August milk price will now be 47.76p/litre for a standard manufacturing litre with 4.2% butterfat and 3.4% protein, according to milkprices.com.

This is in contrast to UK Arla Farmer members who will receive a farmgate milk price of 50.35p/litre for August for a standard manufacturing litre.

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Paul Savage, director of agriculture for Arla UK, said: “As farmers face rising input costs and growing inflationary pressure, the farmgate milk price has increased as we try to support our farmers with the challenges they currently face.

“We have to ensure farmers are able to cover these increasing costs to allow them to keep producing milk and protect security of supply for customers and consumers.”

Arla has confirmed this price covers the whole of August and will also act as the guaranteed minimum price in September, as outlined in its code of conduct with Arla Direct suppliers.

Prices are up by 19.39p/litre compared with the same month last year.

A standard liquid litre of 4% fat and 3.3% protein will increase by an additional 0.86p/litre.

Milkprices.com puts the price of a standard liquid litre for Arla Direct at 45.89p/litre in August, up from a July price of 43.44p/litre.