The UK’s largest independent dairy, Meadow Foods has raised its standard “A” milk price by 1p/litre to 22.15p/litre for November.
“B” prices will also increase by 3p/litre to 30p/litre for October, which is 3p/litre higher than forecast last month.
The processor predicts the November “B” price will be no lower than 30p/litre.
The rise, which will affect Meadow Foods’ 550 producers is the fifth consecutive increase from the processor who has now lifted its price by 5.15p/litre since July.
Despite the increase, many producers are still paid well below the cost of production, which Kite Consulting estimate to be at 25p/litre for October, which will rise as we move into winter.
This is despite soaring commodities prices and spot milk estimated to be 40p/litre.
“These recent increases reflect our policy of returning any milk price improvements as quickly as possible to our producers,” said Simon Chantler, executive chairman at Meadow Foods.
“We will continue to watch the market closely and hope to continue to move our price forward as soon as we can.”
Last month Meadow Foods received a significant investment from US agribusiness investment firm Paine & Partners, highlighting the processors ambitious growth strategy within the industry.