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Arla announces December milk price rise after 6 months of price holds

The co-operative has announced a 0.89ppl increase from December 1

Alex Black
clock • 1 min read
Arla announces December milk price rise after 6 months of price holds

Arla has announced an increase in its on-account price for conventional and organic milk after a price hold since June.

The price for conventional and organic milk will increase by 0.89ppl.

This means the UK manufacturing price for conventional and organic milk will be 36.10ppl and 43.54ppl respectively. Prices have been held since June, barring two slight adjustments due to Arla's currency mechanism.

Arla

Arla Foods amba board director, and Arla farmer, Arthur Fearnall, said: "This announcement is a step in the right direction for our cooperative business. Global milk supplies are slowing down in major production areas and retail sales continue to pick up after the turnaround in the third quarter.

See also: Freshways buys Milk & More from Muller

"Global commodity markets are also recovering. In Sweden the additional organic increase is driven by improved utilisation. The outlook is positive.

Milk price

Paul Savage, Agriculture Director for Arla UK continues: "It is good news that we have been able to increase our farmgate milk price for all farmer owners in our cooperative.

"Our branded retail sales continue to pick up and both conventional and organic markets are coming back to growth." 

See also: UK commodity prices trending up

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