Arla Foods is raising its milk price to owners by a further half a Euro cent per kilogramme from 1 March.
When the increase in the on-account price is applied to the UK standard litre, it equates to an upward movement of 0.38 pence, taking the liquid price to 27.45 pence per litre and the manufacturing price to 28.55 pence per litre.
Commenting on the decision, Arla Foods amba board director, Jonathan Ovens, said: “Milk production in the EU is picking up in line with seasonal trends, although it is still significantly below 2016 volume.
“Milk production in Oceania and South America continues to decline but milk intake in the US is growing by around two per cent. Markets appear to be stable with continuing good demand, particularly in Asia.
“This is our seventh consecutive price increase and we are the first major dairy company in the UK to increase our price for March. I’m confident that this will be well received by our farmer owners.”