Milking dairy cows in parlour© Tim Scrivener

Dairy processor Meadow Food’s B prices have risen by a staggering 10.75p/litre over three months, following a third consecutive A and B price rise.

The price increase for September will see A prices go up by 1p/litre to 20p/litre. B prices have also risen to 22p/litre for August with an estimate set by the processor that the September price will be no lower than 25p/litre.

The announcement is yet more proof of an improving market.

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The increase, which will affect Meadow Food’s 550 dairy farmers, is largely down to a sharp fall in UK milk production and improving commodity prices.

“We realise these increases do not yet return producers to sustainable prices,” said Meadow Foods chief executive officer Simon Chantler.

“However, we hope the current positivity within the market continues.

“We will make every effort to return any improvements as quickly as possible to our producers.”

Meadow Foods is the UK’s largest independently owned dairy group and specialises in supplying milk and dairy ingredients to the food industry.