Arla announces 1.8p/litre milk price rise for March

Arla’s farmgate price is set to rise by 1.8p/litre to 39.38p/litre for its standard manufacturing litre and 46.83p/litre for organic milk.

The on-account price increase will begin on Tuesday 1 March. It follows a price hold for February of 37.58p/litre for a standard manufacturing litre and 45.03p/litre for organic milk.

The co-op’s manufacturing price is based on collection every other day of top-quality milk, with a minimum annual production of 1m litres at 4.2% butterfat and 3.4% protein.

See also: Farm business outlook 2022: Costs outstrip milk price rises

Arthur Fearnall, Arla Foods amba board director and farmer, said the rise was due to the strong development of global commodity prices in January.

“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,” said Mr Fearnall.

“A positive outlook at this time will give them the confidence to continue this investment in their industry-leading sustainability journey.”

Paul Savage, agriculture director for Arla Foods UK, said the price rise would be welcomed by producers, but added that the continued pressure on farmer-owners was a real concern.

“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,” he said.

“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.”