Ongoing cost pressure in the dairy sector has prompted Medina Dairy to raise its milk price by 2p/litre from 1 April.
The price increase will take its liquid standard litre price to 37.8p/litre.
The processor’s chief executive, Sheazad Hussain, said it was “acutely aware’’ of the ongoing on-farm cost pressures impacting its milk suppliers.
“In the light of this, we have continued to engage with our customers to secure price increases from them, with a view to passing these back to our farmers as quickly as we can,’’ said Mr Hussain.
Medina Dairy is awaiting a ruling of an investigation by the Competition and Markets Authority (CMA) on whether its agreed merger with Freshways Dairy could result in a substantial lessening of competition in the milk industry.
The two companies, both based in the south-east of England, want to create a £400m company processing 500m litres of milk annually.
The CMA will announce its decision on whether to refer the merger by 30 March.