Discover a summary of milk prices offered by various processors throughout the month of August.

German processor Müller is continuing to strengthen its prices, similar to July, at 1ppl, with an increase of 1ppl, bringing the total to 39ppl for their farmer suppliers.

First Milk has announced that their member milk price will increase to 41.0ppl for its manufacturing standard litre, including the member premium. This is an increase of 0.7ppl from its July milk price, which stood at 40.3ppl.

Mike Smith, First Milk vice chair and farmer director, commented: “There has been recent positive momentum in global dairy market prices driven by sentiment, which now appears to have stabilised.

“Many of our members continue to face challenging on-farm conditions, with unpredictable weather continuing to impact forage availability both now and potentially for the upcoming winter. As a result, we are pleased to announce this increase to our milk price at this time.”

The British farmer-owned cooperative Organic Herd has announced a further 3ppl increase for their members, following its 1ppl hike in July. This takes the payment for a standard litre to a notable 54p, representing an approximate 14ppl lead over current rates for conventional milk, marking it as the highest announced price for August by any processor or cooperative in the UK.

Martyn Anthony, Organic Herd’s chief executive, said: “Our latest price increase reflects that domestically and in our major export markets demand for organic dairy is strengthening while supply remains relatively constrained.

“The positive demand led picture for organic dairy is very much linked, we believe, to an upturn in consumer confidence as the impact of the cost-of-living crisis, and particularly food price inflation, has started to wane. This means that consumers are now not only focused on value when it comes to the weekly shop but also increasingly, they are looking for values in terms of how their food is produced, something that organic is well placed to respond to.”

Arla has also announced an increase, with the on-account price for conventional milk rising by 0.74ppl to 42.44ppl, while organic milk rose by a further 0.74ppl, reaching 53.31ppl.

Arthur Fearnall, Arla Foods amba board director and Arla farmer, said: “Global milk supplies continue to be stable while retail sales continue to grow, albeit at a slightly slow-er pace. Commodity markets are stabilising, having been driven higher by a higher fat price. Overall, the outlook is stable.”