Arla UK has announced that it is to increase the milk price for September supplies of milk by 1.25c/kg (1.01p/kg).

When applied to the UK standard litre for conventional milk, the increase equates to an upward movement of 1p, taking it to 20.05p/L (23.59c/L).

Commenting on the decision, Arla Foods amba board director, Jonathan Ovens, said that this is welcome news for Arla’s farmer owners who continue to face challenging times on farm.

“Our increase will hopefully reaffirm their confidence in the dairy industry, after 18 months of falling prices.”

Commodity markets have continued to strengthen, as indicated by the increase in the latest GDT auction.

“This follows a significant downturn in milk production and increases in yellow cheese prices across Europe, while prices across European retail markets are also firming,” Ovens said.

The price lift across the Irish Sea comes after months of price cuts, similar to what’s been seen here in Ireland, and it appears that prices are beginning to lift both sides of the water following the last two positive Global Dairy Trade auctions.

Over the past number of weeks in Ireland, co-ops have set their July milk prices, with most co-ops increasing the milk price.

Lakeland Dairies was the first co-op out of the blocks after it set a July base milk price of 24c/L for supplies.

Glanbia announced that it will pay its member suppliers 23c/L for July manufacturing supplies of milk, a 1c/L rise on the June milk price. Dairygold also announced a milk price rise of 1.5c/L for July supplies, bringing the milk price to 24c/L.

The board of Arrabawn Co-op decided to raise the base milk price by 1c/L and that it is to pay its member suppliers a support of 0.5c/L bringing the milk price for July to 24.25c/L, including VAT.