UK – Arla’s decision to increase its UK member price from March 30 should prompt other dairies to follow suit, says the NFU’s dairy board chairman.
The European cooperative bucked a trend of price cuts by announcing a standard litre price of 25.8 pence per litre, an increase of 0.83 pence.
This is in line with an Arla-Amba price rise of 1.5 cents.
“At last we have seen a UK milk price follow the upward motions of market indicators over recent weeks,” said Rob Harrison of the NFU.
“Farmers have been seeing rising wholesale prices almost across the board with no sign yet of this feeding back to milk cheques, but we must see income returning to the farm gate quickly in order to save the industry from further devastation."
He called for immediate returns to the farm gate, adding that processors cannot hold on to increasing returns when farms suffer “monumental loss of income”.
NFU Cymru milk board chairman, Aled Jones, said that now is the time to rebuild trust in the sector.
He called for transparent pricing mechanisms, quick returns to farmers’ incomes in line with the market and a fair balance of risk across the supply chain.
Arla said the price lift follows an upward market trend and a reduction of milk production in New Zealand and Europe, although the long term picture unclear.
Ash Amirahmadi of Arla said the most recent global dairy trade result and impending quota abolition bring uncertainty around the price increases.