The UK’s largest independently owned dairy group, Meadow Foods, has increased its standard A litre milk price by 0.85p/litre.
The processor’s 550 producers will now receive 29p/litre from 1 September.
A prices have risen by 31.1% compared with the same month a year ago.
Meadow Foods anticipates the B price for July will be between 30p/litre and 33p/litre and highlighted that markets were further strengthening into the autumn.
Executive chairman at Meadow Foods, Simon Chantler said the processor hoped to pass on further price rises as quickly as possible.
The processor joins the ranks of Arla and First Milk who have both increased milk prices in recent days in the face of a tightening of UK production and sky-high butter prices.
A further weakening of the pound against the euro led to a strengthening of the UK Milk Futures Equivalent (UKMFE) which is predicting next month could come close to the market’s all-time high of 39.82p/litre, set in August 2013.