Graham’s Dairies, Scotland’s largest independent dairy, is set to increase the price it pays for liquid milk next month.

Milk producers supplying the dairy will receive about 22p/litre from 1 september, an increase of 2p/litre.

And the dairy said it was likely to lift the price to about 25p/litre the following month.

Unprecedented movement

Robert Graham, Graham’s managing director, said the increase kept the firm at the forefront of prices paid to producers at a time of unprecedented movement in the global milk market.

“There is a worldwide shortage of liquid milk and milk powder and there’s no doubt that this is leading to what many economists and sector experts believe will be a permanent and upward re-adjustment of base prices for dairy products,” he said.

‘Seismic shifts’

“After years of serious challenges this is good news for farmers.

“These seismic shifts in the global marketplace will have an ongoing dramatic effect on farm-gate prices.

“These will, inevitably, be reflected on the High Street, not just in increases in the price of liquid milk but on all foodstuffs associated with dairy product.”