Arla Foods amba will hold farmgate prices at 23.04 pence per litre through November.
Last month, Arla became the first UK processor in several months to announce a price increase, although its 0.5 euro cents per kg translated to just a 0.03ppl increase for farmers accounting for currency smoothing mechanisms.
Ash Amirahmadi, head of milk and member services at Arla Foods UK warned of the issues still present in dairy markets as the co-operative made the announcement.
“Despite production slowing down and even declining in some parts of the world, global supply is still increasing. Milk exports from the USA and New Zealand have decreased while supply from the UK and mainland European markets continue to increase,» he said.
“After a couple of months of welcomed growth the market for commodity milk powders has stabilised as shown by the latest GDT auction.
«However, the bulk cheese market is still under considerable pressure in Europe as a result of significant stocks and limited export opportunities partly due to the Russian ban on imported cheese.»
But he added UK retail milk products had seen positive developments, particularly in liquid products which had helped to stabilise farmgate prices.
Source: FGInsights
