Dairy Crest has announced a 0.5p/litre increase for farmer suppliers on its manufacturing contracts from 1 October.

The move follows an extra 0.75p/litre for suppliers to its Davidstow creamery in July and takes the standard litre price to 25.54p/litre. The liquid milk price remained unchanged at 24.66p/litre for October, after a 0.42p/litre increase last month.

Milk procurement director Mark Taylor said the latest increase followed improved market returns and efficiency savings. “Our aim is to deliver a sustained movement in price to continue to provide our suppliers with greater security.”

David Herdman from Dairy Crest Direct, which represents 1350 Dairy Crest suppliers, welcomed the news.

“The cumulative increase of 1.25p/litre since July will help address the inflationary cost implications on farm. We recognise the highly competitive nature of liquid milk markets, but we will continue to seek improved returns for all of our members.”