Arla has confirmed that farmers and suppliers should expect an increase in prices paid for July milk supplies.

From July 1, 2022, the Arla on-account price will increase by (euro) 2.0c/kg for conventional milk and (euro) 1.0c/kg for organic milk.

This will increase Arla’s farmgate milk price for the standard manufacturing litre by 1.66p/L to 49.45p/L for conventional and 0.74p/L for organic, taking the organic milk price to 55.11p/L.

The quarterly currency exchange rate adjustment will negatively impact the on-account price by 0.12p/kg.

Arla Foods amba board director, and farmer owner, Arthur Fearnall, said:

“Over the last few months, we, as farmer owners, have been pleased to see a significant increase in our farmgate milk price for both conventional and organic milk.

"This is much-needed as our on-farm costs have seen drastic inflation in recent months.

"Commodity prices, which have been climbing, have now begun to stabilise although remaining at a high-level and we continue to see a decline in the overall milk supply across the EU. Nonetheless, the outlook for the future is stable.”

Paul Savage, agriculture director for Arla UK continued:

“In the UK, we continue to face a period of significant inflation which, in particular, is adding pressure to the UK organic market overall.

"It is against this backdrop that we are pleased to have been able to secure this latest increase in the overall price for our organic milk.”