The rise of two eurocents per kilogramme takes the manufacturing standard litre price to 29.17ppl, with the liquid price at 28.03ppl.
NFU dairy board chairman Michael Oakes said: “This is a positive announcement from Arla and clearly a move in the right direction. Even though some may claim that improvements have been slow in coming through, Arla do have an agreed milk pricing policy in place which they share with their supplying members. They also provide regular updates on company strategy and markets through briefings and meetings. Those farmers supplying Arla need to take every opportunity to get involved in these meetings and engage more with their farmer representatives.
"This is in line with our NFU Dairy strategy which calls for better, fairer supply chain relationships through:
- promoting engagement with processors, know your milk buyer, understand their business, increase your knowledge
- consider better ways of farmgate milk pricing and challenging transparency
- advocating the right to producer representation."
Arla Foods amba board director, Jonathan Ovens, said: “This will be welcome news for our owners that we are reflecting current market returns from rising fat prices in our July milk price.
“The current market situation is characterised by strong demand and low stocks of fat, which is driving up prices for butter, cheese and other products containing fat. The market for protein is also firming, however at a low level.”
- Click here for a full copy of the NFU Dairy Board Strategy.