Milk Link is to increase the price it pays its farmer suppliers by 0.5p/litre from next month.

The move follows a 0.75p/litre increase in July’s price and takes the co-op’s standard litre price for manufacturing milk to 25p/litre and 25.22p/litre for liquid milk.

Milk Link chief executive Neil Kennedy said the increase reflected improved returns from the retail and foodservice sectors.

“As a farmer-owned co-operative we are absolutely focused on providing a sustainable future for our members’ dairy enterprises. Central to achieving this is our ability to add value to their milk by processing it into high quality, great tasting dairy products and passing the returns back to our members as quickly as possible.”

Milk Link also announced an average 0.5p/litre increase in the price paid for milk supplied by its non-member “direct” dairy farmers, effective from 1 August.