Arla has announced a price increase for conventional and organic milk throughout January, quoting a ‘stable’ outlook for the year ahead.

The UK manufacturing prices for conventional milk will rise to 37.58ppl, while organic milk is to be priced at 44.61ppl. Agricultural director for Arla UK Paul Savage said: “Both conventional and organic markets are coming back to growth and our retail branded sales continue to improve.

“With a stable outlook, this latest and significant increase should give confidence to our farmer owners as we begin the start of a new year.”

Arthur Fearnall, Arla Foods amba board director expressed positivity about the news, describing it as ‘a good start to the new year’ for the co-op’s suppliers in the UK and Europe.

“Retail sales continue to pick up after the turnaround in quarter three in 2023,” he noted, adding that global commodity prices recovered, albeit slightly weakened following seasonal demands.

In Central Europe, Arla’s on-account price for organic milk will experience a larger increase of 5 euro cent per kg, from January 1, 2024. “This increase for organic is driven by the transition of the certification scheme to the organic association Naturland and following the increased profitability from retail positions. The outlook is stable,” said Mr Fearnall.