Arla, First Milk, Muller raise farmgate milk prices amidst ‘positive momentum’ in commodity markets

Muller Milk & Ingredients raised its milk price for direct suppliers by 1p per liter (ppl) starting November 1, 2024, following another 1ppl increase to its farmgate milk price increase in October.

First Milk announced an increase of 1.25ppl from November 1 for its manufacturing standard liter including the member premium.

Arla’s on-account price for conventional and organic milk prices increased 1.69ppl for October.

Also in liquid contracts, Crediton and Payne’s Dairies increased by 0.75ppl and 1.50ppl respectively while Tesco held and Sainsbury’s reduced its price by 0.04p.

In cheese, Leprino Foods raised its price for a fourth consecutive month, this time by 0.50ppl while Wyke Farms (+0.48ppl), Wensleydale (+0.77ppl), Saputo Dairy (+1ppl), Belton Farm (+1ppl), Barber’s Cheesemakers (+0.60ppl) and South Caernarfon Creameries (+1.25ppl) also increased prices.

Favorable global dairy market prices are behind the rise in farmgate prices in the UK, which have been above 2023 levels since April.

Mike Smith, Vice Chairman and Farmer Director at First Milk, said: “We are pleased to be able to deliver another milk price increase to our members. We are seeing some positive momentum again in dairy commodity prices, whilst continuing to deal with challenging on-farm conditions due to variable weather and heavy rainfall across September, as such I am sure that this news will be well received by our members.”

Arla Foods amba board director, and Arla farmer, Arthur Fearnall, said: “Commodity markets are continuing to increase, driven by fat heavy products, especially butter.

“The increase is driven by the strong demand and additionally fuelled by the current lower milk volumes traditionally associated with this time of year and limited availability of fat in the EU. Overall, the outlook is slightly positive.”

Paul Dover, UK Agricultural Director at Arla, added: “We are pleased to be able to pay a higher milk price in October, but our recent survey shows the majority are finding it more difficult than ever to maintain and improve their productivity on farm due to labour shortages.

“We’re calling on the new government to invest in developing the skills farmers need on-farm, as well as to act on promoting farming as a high-skill and desirable industry in schools and universities.”