Dairy Crest tanker© Geoffrey/Robinson/REX/Shutterstock

UK milk processor Dairy Crest has increased its October standard litre milk price by 1p/litre, with a further increase of 0.5p/litre in November.

The rise will take next month’s milk price to 23.72p/litre, which will affect around 400 suppliers of its Davidstow plant.

The increases mean that by November, Dairy Crest’s standard milk price of 24.22p/litre will have risen by 11.51% over the previous three months.

See also: Strong dairy market prices failing to reach farmgate

Despite milk prices edging upwards across the industry, the gap continues to grow between what farmers are paid and spot milk prices, which currently stand at 37p/litre and are expected to hit 40p/litre by the end of the month.          

“This latest two-phased milk price increase demonstrates that we are determined to continue paying a leading price to support and grow our milk field in the South West,” said Dairy Crest head of procurement Ruth Askew.

Unprecedented deflation 

“Our farmers have been facing difficult conditions on farm as the whole industry has dealt with unprecedented deflation over the past 18 months. 

“During this time we have worked hard to support our farmers by paying a fair, stable and competitive milk price.”

She added: “We are committed to reviewing market conditions on an ongoing basis.”

Dairy Crest is one the UK’s largest milk processors and owns brands Cathedral City and Davidstow cheese.