Meadow Foods’ 650 farmer suppliers will receive a 1p/litre price increase from 1 November following improvements in market returns.
It is the fourth consecutive rise for farmer suppliers and means that the processor’s standard A-litre milk price will be 27p/litre.
Mark Chantler, chief executive of Meadow Foods, said: “We promised that as soon as we were able to achieve better prices, we would pass the benefit back to our producers and we are pleased to do that.”
But he added: “We continue to closely monitor the dairy markets as there remains a great deal of uncertainty, not least due to the continuing impact of Covid-19 and the possibility of further disruption following our departure from the EU.”
Meadow Foods operates three factories, in Cheshire, the East Riding of Yorkshire and Cambridgeshire, producing value-added ingredients for the food industry.