First Milk has increased the price it pays for marginal milk for the month of June.

Suppliers are set to receive an average £510 extra for their marginal milk, the milk that is produced in excess of the core milk volume.

The rise in June is the third made by First Milk in as many months.

First Milk said the increase was due to additional returns from the whey and powder markets.

Peter Humphreys, chief executive of First Milk, said: “In recognising the current cashflow pressure on our members, we decided on this approach as a means of passing returns back as quickly as possible.

“We remain optimistic about our ability to continue to push prices up in all the markets in which we operate.

“We will keep our milk price under constant review and look to promptly pass increased returns back to our members.”