Arla is to increase the price paid to its Arla Milk Link farmer members for their milk by 1.3ppl from next month.
The increase will take the price up to 28.83ppl from 3 December and was prompted by better market returns on dairy products from global markets.
“At a time when we appreciate that all in dairying are under considerable financial pressure, Arla is committed to supporting its farmers,” said Neil Kennedy, Arla Foods senior vice president for milk and member services. The price increase had been made possible because global markets continued to be positive and the company had been able to implement price increases in some of its markets, he added.
Arla’s move follows an announcement made last week by the Müller/Wiseman group that it would increase its farmers’ milk price by 0.5ppl, to 29.5ppl from 1 December, with a further 1ppl increase to follow on 1 February. At the time, CEO Ronald Kers said: “We are determined to be the leading dairy company in the UK and Ireland and the preferred home for milk produced by Britain’s dairy farmers.”