Arla Foods is raising its milk price to owners by a further two eurocents per kilogramme from 1 December. This is the fourth consecutive increase since September.
When the increase to the on-account price is applied to the UK standard litre, it equates to a 1.49ppl rise in the milk price, which takes it to 24.63 pence.
Commenting on the decision, Arla Foods amba board director, Johnnie Russell, said: “European markets are continuing to strengthen, following the reduction in milk production and we are seeing further positive signals from our international markets, despite the continuing difficulties in the oil producing areas.
“Our December increase is the fourth consecutive rise in our conventional milk price, equating to an overall increase since 1 September of 5.58ppl.
“The outlook for the coming months remains positive. As a result, there will be a similar improvement in January 2017.”
Arla Foods is a global dairy company and co-operative owned by 12,700 dairy farmers with circa 2,700 of whom are British.
Dating back to 1881, Arla’s purpose is to secure the highest value for its farmers’ milk, while creating opportunities for their growth. With production facilities in 11 countries and sales offices in a further 30, Arla is the world’s fifth largest dairy company and largest supplier of organic dairy products. Arla has a total of more than 18,000 colleagues and its products are sold under the well-known brands Arla®, Lurpak® and Castello® in more than 100 countries.
Arla Foods UK is the largest dairy company in the country and is home to leading dairy brands Anchor®, Cravendale, and Lactofree® with a turnover of €2.9 billion. As well as being a leading supplier of fresh milk, number one in butter, spreads and cream, Arla is the UK’s largest cheese manufacturer. It has also built the world’s largest fresh milk facility located at Aylesbury and has plans for it to be the first zero carbon site of its kind. The UK business has a team of approximately 3,500 colleagues located at its dairies, distribution centres and head office.