A JANUARY farmgate milk price rise is now in place for Arla suppliers.

The 0.9p/litre milk price rise for Arla Foods’ suppliers came into effect from January 1.

When applied to the standard manufacturing litre (4.2% butterfat and 3.4% protein), farmers will receive 37.58p/litre from the co-op.

Meanwhile, organic producers will be paid 45.03p/litre.

The announcement came off the back of an increase of just over 3p/litre for Arla members from December 1 last year.

Arthur Fearnall, Arla Foods amba board director and farmer-owner, said: “Farmers countrywide are experiencing significant and sustained inflationary pressures on their everyday and longer-term on-farm costs. So, in a strong market where pricing for all EU dairy commodities has continued positively in November, this farmgate milk price increase will be welcomed by our farmer-owners. The outlook is stable to positive.”

Graham Wilkinson, senior agriculture director in Europe, said the festive period is a time when many consumers enjoy dairy and the co-op remained focused on ensuring continued supply among mounting external pressures, which it expects to run into 2022 and beyond.

“The cost of producing milk is increasing like never before, with on-farm expenses and premiums for ensuring a sustainable future for dairy, and it can no longer be treated like a basic commodity,” Mr Wilkinson said. “These pressures are being felt everywhere across the country.”

Meanwhile, from this month, Arla and Starbucks will develop and pilot a new sustainable dairy sourcing blueprint for Starbucks, designed to help reduce the coffee chains carbon emissions from dairy

At the end of the three-year pilot, Starbucks hopes to scale the blueprint to support Starbucks dairy suppliers across Europe, Middle East and Africa (EMEA).

The pilot will work with 14 of Arla’s UK farmer owners, bringing in the broader scientific and sustainable farming expertise of Arla and working with an independent advisor appointed by Starbucks.

This supports both Starbucks ongoing commitment to reduce greenhouse gas emissions by 50 percent globally and Arla’s target to reduce greenhouse gas emissions by 30 percent per kilo of milk by 2030.