The manufacturing standard litre price will rise by 1.92ppl from July 1
Including the positive impact of the quarterly currency smoothing mechanism, the Arla manufacturing standard litre price will increase by 1.92ppl to 30.50ppl from July 1.
Arla said this increase was due to the impact of the weather in the first half of the year which meant European milk volumes were lower than expected.
Along with strong demand particularly from Asia, this has led to commodity market prices growing strongly in recent months.
But strong supply in the organic markets continued to keep pressure on organic prices.
Arla Foods amba board director, Johnnie Russell, said: “I am confident this will be welcome news to our farmer owners, who have been experiencing challenging weather conditions, which have dampened milk volumes from farm. I am pleased to say that the overall outlook for the coming months remains positive.”