Muller has increased its milk price by 1.25p/litre taking its standard non-aligned price to 27.51p/litre from 1 February.
This includes a 0.82p/litre additional retail supplement paid by Aldi, Lidl and Morrisons, which has fallen by 72.7% (2.18p/litre) since August as milk prices have risen across the board.
The fifth consecutive rise means Muller’s prices have gone up by 45% since October, an increase of 12.4p/litre.
“This latest increase again demonstrates our commitment to paying a competitive milk price to our farmers,” said agricultural director at Muller milk and ingredients (MMI), Lyndsay Chapman.
“Our business model enables us to deliver a more stable milk price profile and together with our confirmed investment program for the future, is helping to build confidence at farm level.”
February will also allow Muller’s 1,900 producers, including the 650 from the Direct Milk DPO, to sign up to the previously delayed new contract.
Ms Chapman added: “We are concluding what has been a very detailed process to review and finalise our new contract proposals, having taken on board the feedback from our farmers.
“We now expect to issue contract documents in February, for sign up to the new terms from the new milk year.
“We have also been working on our new representative structure with the [Muller Milk Group] farmer board with our immediate focus being the election of the Farmer Forum.”
The consultation surrounding the future of the German processor’s Chadwell Heath plant has come to an end and the firm says that the decision has entered the post-consultation period, with a final decision expected in the coming weeks.
The north-east London dairy employs 389 staff members and its potential winding down is part of a £100m restructuring of MMI’s dairy operations.