Arla Foods is to increase the milk price for Arla Milk Link members by 1.06 pence per litre from the end of this month.

The new price was the result of improved business performance and increases in global commodity prices which were having a positive impact on the retail market globally, said Arla.

It will take the standard price for Arla Milk Link farmers (who are members of Arla Foods amba co-operative – parent company of Arla Foods UK) to 30.21ppl.

“We are totally focused on securing the highest possible value for all of our farmers’ milk, through maximising the returns we generate on every litre,” said Ash Amirahmadi, Arla’s vice president with responsibility for UK and member services.

The increase was welcome news for British farmers who currently faced huge pressure as a result of increasing costs and challenging weather conditions, added Johnnie Russell, board director of Arla Foods amba.

The markets indicated a “positive outlook” over the coming months and Arla would pass back further benefits to its members as soon as it was able, Amirahmadi said.