Farmers supplying Dairy Crest are set to receive an extra 0.4p/litre for their liquid milk from 1 December.
About 1000 members of the dairy’s supply group will benefit from the increase, which the processor says will cover some of the higher costs farmers are set to face over the winter.
Arthur Reeves, Dairy Crest’s milk purchasing director, said the rise reflected the increases the processor had received from its middle ground customers.
“It is good to end what has been a challenging year with another increase,” he said.
“We recognise that some milk processors have been able to increase their prices by more than Dairy Crest this year.
“However, we believe Dairy Crest’s strong brand portfolio will benefit our milk suppliers in what could be a difficult 2008 if the recent fall in commodity returns continues into next year.”