Arla Announces May Milk Price Increase for Farmers

The on-account milk price for conventional milk will rise by 0.45 pence per liter (ppl), while organic milk will see an increase of 1.34 ppl.

This adjustment brings the UK manufacturing price to 40.45 ppl for conventional milk and 49.98 ppl for organic milk.

Arthur Fearnall, board director at Arla Foods amba, highlighted the current stability in the sector, citing slightly lower global milk supplies, rising retail sales, and stable commodity markets.

“The increase in the organic milk price reflects growing demand in the UK. Overall, the outlook remains stable,” Fearnall commented.

Arla farmers are compensated based on constituents through a manufacturing schedule. For easier comparison, the liquid price stands at 38.80 ppl for conventional milk and 47.95 ppl for organic milk, calculated on 4% fat and 3.3% protein.

These adjustments follow dairy processor Muller’s recent announcement of a milk price rise for its farmer suppliers, effective from June 1, 2024.