Farmers welcome Arla milk price rise at last

The milk co-operative will increase the amount it pays for milk by 0.03 pence per litre (ppl) from Monday (September 28), following a year of price cuts by processors.

Arla’s head of UK milk and member services Ash Amirahmadi said the increase came after improvements through the supply chain and initiatives from its retail customers.

“Our revenue has been positively impacted which is contributing to the first increase in Arla’s milk price for over six months,” Amirahmadi said.

‘Too early’ to confirm trend reversal

“While this is positive, it is too early to confirm that the global market trend has reversed.”

Asda, Tesco, Morrisons, Aldi and Lidl have agreed to pay suppliers more for milk after being targeted by protesters this summer.  

Struggling dairy farmers blockaded distribution centres, bought milk up in bulk and even herded cows into supermarkets to put pressure on retailers. 

National Farmers Union dairy board chairman Rob Harrison described Arla’s price announcement as an “encouraging” victory for farmers.

‘Starting to make a real difference’

“This is testament to all the hard work we’ve seen in recent weeks in lobbying UK and European retailers which I believe is starting to make a real difference, but will not solve the current crisis alone,” he said. 

“It is still an extremely tough time for dairy farmers as we move into the autumn and this upward movement must continue if dairy farms are to survive the winter.

“So today I urge Arla and other UK milk buyers not to take advantage of distressed sellers on the market.”

The global dairy market has been hit by oversupply, a reduction in demand from China and a Russian ban on dairy products from Europe.