Arla has raised its October milk price by 1.6ppl
Arla Foods has announced the UK standard litre will increase by 1.6ppl to 21.65ppl from October 1st. It follows an increase of 1ppl in September.
This includes a positive currency impact as a result of the new quarter’s average exchange rate being introduced to the pricing mechanism.
Arla Foods amba board director, Johnnie Russell, said: "This is the second consecutive month that Arla has increased its milk price.
"While the price is still not adequate, the one pence increase in September, coupled with the 1.6 pence increase in October, is good news for our farmer owners and demonstrates the strength of our business model which allows us to increase the returns to our farmer owners in line with our formulaic pricing mechanism.
"Commodity markets, as well as yellow cheese markets in Europe, are continuing to strengthen, and prices across European retail markets also continue to firm. Milk production in the EU continues to slow down, and we expect this trend to carry on over the coming months."
NFU dairy board chairman Michael Oakes said: "Today we've heard positive milk price announcements by Arla and First Milk for October. They're a move in the right direction but clearly prices are still nowhere near sustainable and have a long way to go to compensate for the tough two years farmers have endured.
"We're still hearing that certain milk buyers are accusing others for the lack of movement in their own milk price and this blame-game needs to stop.
"Dairy market signals are pointing skywards and we now need to see all milk buyers start paying fair, sustainable milk prices to their suppliers – prices that truly reflect the situation in the market."