Arla Foods is raising its milk price to owners by a further two eurocents per kilogramme from January 1.
When the increase in the on-account price is applied to the UK standard litre, the increase equates to an upward movement of 1.51 pence.
January also sees a new quarter’s (October to December) average exchange rate introduced to the pricing mechanism, resulting in a 0.17 pence per litre increase, taking Arla’s UK standard litre to 26.31 pence.
Commenting on the decision, Arla Foods amba board director, Jonathan Ovens, said: “Markets continue to be strong, due to the reduction in global milk production coupled with ongoing strong demand.
“In Europe, the markets for added value products continue to strengthen, while spot prices are weakening. The organic market in Europe remains strong.
“This is the fifth increase in Arla’s milk price in as many months, realising a 31 per cent uplift in the price since 1 September.”