Arla Foods has held its on-account milk price for August at 19.05p/L (22.81c/L) for the UK standard litre.
The co-op had cut its milk price in June by 1.3c/kg, it also cut its price for May supplies of milk by 0.75p/l (0.95c/L) and farmers supplying the co-op also received a milk price cut for April of 0.75p/L (0.95c/L).
Arla Foods amba board Director, Johnnie Russell, said that the strengthening of commodity markets, as well as some European retail markets, indicates that markets are continuing to firm.
“We believe that the market situation is more stable,” Russell said.
Earlier this month, the co-op unveiled Arla Farmers Milk, a new milk brand, created to give shoppers the opportunity to pay a little extra on each bottle to help its farmers.
The launch from the farmer-owned dairy company is based on research showing that almost two thirds of consumers (63%) said they would pay more for dairy products if they know the extra money goes back to farmers, according to Arla.
Arla Farmers Milk became available in ASDA stores from July 12, in a four-pint format, with both semi-skimmed and whole milk options at an RSP of £1.20 (€1.41).
ASDA brand four-pint milk RSP is 95p (€1.11) and the extra 25p (0.29c) for Arla Farmers Milk will be returned to directly to Arla farmers.
In line with Arla’s cooperative’s principles, this extra money will be shared amongst its 12,700 farmer owners.
The co-op’s Farmer Board Director, Jonathan Ovens, said that the launch of this new milk is a great boost to Arla’s dairy farmers.
“People want to know more about where their food comes from and who benefits and are willing to pay more if they know it goes directly to the farmers that produce it.
“As we’re part of a cooperative, the money we receive goes back to the farmers who supply our milk.
“With farmgate milk prices much lower than we would like, we thank ASDA for the continued support of our cooperative principles and also for providing an opportunity for their shoppers to give something back to Arla dairy farmers,” he said.