Arla Foods has announced that the Arla Milk Link milk price will increase by 0.5 pence per litre (ppl) from 1 November 2012.
Following the increase, Arla Milk Link suppliers – with the exception of organic dairy farmers - will be paid 27.5ppl for their raw milk.
“The increase reflects the recovery in global dairy commodity markets, combined with the continuing strong performance of Arla’s global brands, and the benefits from a series of efficiency improvements instigated in the first half of the year coming through. We believe that these factors will continue to increase Arla’s revenue and in turn provide the bases for further upward movements in our milk price over the coming months,” said Arla Foods vice president for milk and member services, Neil Kennedy.
Last month, the European Commission (EC) approved Arla’s merger with Milk Link – a decision that created the UK’s largest dairy processor.