Farmgate milk prices in November are anticipated to increase, offering additional advantages to the industry as strong wholesale dairy demand persists. Prices for bulk cream, butter and mild cheddar are currently experiencing significant year-on-year growth, despite encountering some recent challenges.

Arla has confirmed price hikes for both conventional and organic milk for its British farmer suppliers in November 2024.

For conventional dairy farmers, Arla will provide a 2.66p per litre (ppl) increase this November, while organic milk will see a 1.78ppl hike. This change brings the UK manufacturing price to 47.65ppl for conventional milk and 57.64ppl for organic milk.

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Arla noted that ‘commodity markets were continuing to increase, driven by consistently strong demand’, with retail sales remaining robust.

“Global milk supplies are stable. Overall, the outlook is stable.” said Arla Foods amba board director, Arthur Fearnall.

Paul Dover, Arla’s UK agricultural director, added: “We have just concluded our autumn roadshows, where we met over 500 farmers across the UK."

“We were delighted to be joined by Arla CEO Peder Tuborgh for part of the tour, alongside the UK leadership team. We’d like to thank our members for their engaging and cooperatively spirited discussions at these events.”

Meanwhile, UK processor First Milk has announced a milk price increase of 1.25ppl. This adjustment raises the UK processor’s milk price to 43.85ppl for a manufacturing standard litre, including the member premium.

Owned by around 700 farming families, First Milk expressed satisfaction in delivering another price increase. Vice-chairman Mike Smith said: “We are seeing some positive momentum again in dairy commodity prices while continuing to deal with challenging on-farm conditions due to variable weather and heavy rainfall in September.”

Additionally, dairy processor Müller has unveiled a milk price rise of 1ppl for its farmer suppliers.

Farmers supplying Müller under the Advantage scheme, which promotes supply chain collaboration, herd health, and reduced environmental impact, will receive a milk price of 42.25ppl.

Richard Collins, head of agriculture at Müller Milk & Ingredients, commented, “We’re pleased to announce that, following an increase to our farmgate milk price in October of 1ppl, we are in a position to increase it again by a further 1ppl.”

“We’re pleased to see stability in the market, yet we also recognise the ongoing pressures on our supplying farmers and will, as always, continue to monitor supply and demand.”