Meadow Foods has increased its standard “A” milk price by 1.15p/litre, taking October prices to 21.15p/litre.
It is the fourth consecutive month that the processor – the largest independent dairy in the UK – has increased prices.
Meadow foods also announced “B” prices for September were 1p ahead of forecast at 26p/litre, with October B prices expected to be no lower than 27p/litre.
The increase means A and B prices have now risen by 10.15p/litre (92.3%) and 9p/litre (50%) respectively since they hit rock-bottom in April.
The news comes at an exciting time for Meadow Foods, which today announced a significant strategic investment from US private equity firm, Paine & Partners.
The investment will provide powerful financial backing behind the processor, which is supplied by 550 producers.
Meadow Foods executive chairman Simon Chantler said: “We will continue to make every effort to return any improvements as quickly as possible to our producers.
“These increases continue to move our price forward, but we realise more work has to be done.”