The UK’s largest independently owned dairy group, Meadow Foods, has increased its standard A litre milk price by 1p/litre.
The processor will pay its 650 producers 31p/litre for A litres with a constituent content of 4% butterfat and 3.3% protein from 1 November.
The rise means the Meadow A price has now increased by 27% since November 2016.
The processor also announced its B price for August was 35p/litre, with the September price projected to be between 33-36p/litre.
“This latest move is a further reflection of the strengthening milk market and our commitment to pass back to producers any positive price improvements as soon as possible,” said Mark Chantler, chief executive officer at Meadow Foods.
“Going forward we will continue to monitor the situation very closely and hope that its continued improvement will allow us to move our price further forward in due course.”
September marks 12 months since Meadow Foods received a significant strategic investment from US private equity firm Paine & Partners.
Last month, Meadow Foods completed the takeover of Fayrefield Liquids and told Farmers Weekly that the vast majority of Fayrefield producers had now moved on to Meadow contracts and would benefit from this price rise.