Milk Link is the latest company to increase its farmgate milk price, on the back of improved returns from liquid and commodity markets.
The co-op will pay an extra 1p/litre from 1 September for both manufacturing and liquid pricing schedules.
The move follows a 1.85p/litre increase from Robert Wiseman Dairies last week and takes Milk Link’s standard litre member price for both contracts to 28p/litre. Non-member “direct” dairy farmer suppliers, not linked to a basket-of-prices schedule, will also benefit from the September increase.
“The milk price increase reflects strong ongoing returns from the commodities markets, enhanced operational efficiencies and improved returns from the liquid market,” chief executive Neil Kennedy said.
“It will provide a much-needed boost to our members’ farm incomes at a time when they are under considerable financial pressure due to the continuing high cost of feed, fuel and fertiliser and the requirement to invest on farm to meet new environmental legislation.”
The increase does not apply to Milk Link’s organic suppliers, who will remain on the “alliance” price.