CHEESE MAKER Joseph Heler is the first company to announce a price increase to its milk suppliers on the back of the recent retail price initiative.
The firm will increase its producer price by 0.504p/litre from Wednesday June 15, despite earlier cutting its June milk price by 0.6p/litre.
Managing director Mike Heler said: “We’ve agreed to pass on exactly what we’ve been given back so far, and our price will be going up from this week.”
Following Tesco’s lead, other retailers were likely to announce this week that they would join the retail price initiative, he added.
But other milk buyers have yet to follow. Arthur Reeves, milk purchasing director at Dairy Crest, said it appeared that so far only retailers were moving to increase prices. “We’re talking to agree price increases with our customers. As soon these are secured, we will pass them back on to suppliers.”
Mr Reeves said he expected an outcome by the end of the month or early July, and any price increase would be backdated accordingly.
Spokesmen for Dairy Farmers of Britain and First Milk said they were in discussions, but were not yet able to announce any price increases.