Arla Foods’ on-account prices for conventional and organic milk will increase by 0.5 euro cents per kilo, from October 1.

There will also be a 0.06 p/kg quarterly currency adjustment bringing a total increase of 0.5 pence per kilo.

When applied to the manufacturing price, Arla’s pence per litre for conventional milk will be 29.76p and the organic price 38.12ppl for Arla’s farmer owners.

Arla Foods amba board director, and farmer owner, Arthur Fearnall, said: “Commodity market prices have remained relatively stable over the last few months, with the recent positive GDT more the result of contract prices for next year increasing to current market prices, rather than any general positive market development.

"The current market outlook remains stable.”