The Arla on-account price for conventional milk will increase by 1.0 euro cent per kilo and the organic milk price will remain unchanged in the UK, from 1 November 2021.

This means that when applied to the standard manufacturing litre Arla’s conventional milk price will increase by 0.90 pence to 33.52 pence per litre the organic milk price will remain at 40.98 pence per litre for Arla’s farmer owners.

New Organic 2.0 standards launched to boost sales of organic dairy products in the UK and attract even more British consumers who care about sustainability and animal welfare. Arla’s organic farmers will all convert to 100% renewable energy to meet the new standards and commit to more ambitious targets for reducing CO2 emissions.

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Arla Foods will explore regenerative dairy farming practices on six pilot farms in the UK and create data-driven proof points of their impact on nature and climate. At the same time, the cooperative is activating all its 114 organic Arla farmers in the UK to measure their soil carbon content and register practices that promote biodiversity.

Arla Foods UK reports revenue growth of 3 per cent in the first half of 2021 with a net revenue of £1.1bn (€1.2bn). The company continued to navigate the operational challenges presented by Covid-19, and saw retail and e-commerce sales of its branded products continue to grow as people in Britain maintained a higher level of in-home consumption in the first part of the year.

However, in the second half of the year the inflationary environment created by Covid-19 is expected to challenge the cooperative and its farmer owners with increasing production costs due to higher prices on fuel, energy, packaging and feed.