Arla Increases Conventional Milk Prices Amid Stable Dairy Markets

Arla, a leading dairy cooperative, has announced an increase in its conventional milk price effective from July 2026. The price will rise by 1.32 pence per litre, bringing the UK conventional headline price to 37.24 pence per litre. This adjustment includes a quarterly currency exchange rate adjustment that contributes an additional 0.09 pence per litre to the on-account price.

Despite this increase for conventional milk, Arla has decided to keep its organic milk price unchanged for July, maintaining the headline price at 56.40 pence per litre. The decision comes as global milk supplies have stabilized at high levels, with an abundance of supply across Europe. Retail prices are also stabilizing, and global commodity market prices are described as 'overall stable.'

Arla's outlook for conventional milk remains stable, but the situation for organic milk is less certain due to an imbalance between supply and demand. Although UK organic demand is stable, the overall outlook for organic milk remains 'uncertain.'

In a related development, First Milk, another dairy cooperative, has declared a separate price increase for its milk. From July 1, 2026, the price for a standard manufacturing litre will rise by 0.6 pence per litre, taking it to 31.35 pence per litre, which includes the member premium.

These announcements indicate some upward movement in conventional milk prices, while organic milk markets continue to be pressured by supply-demand imbalances.