The UK’s second largest dairy processor, Muller, will increase its standard milk price by 1.31p/litre from 1 September.
Muller’s 700 non-aligned producers will receive 29p/litre before the retailer supplement paid by Aldi, Lidl and Morrisons is applied.
This extra payment, introduced when prices hit rock-bottom last year, was worth 0.328p/litre in June and is expected to continue to decrease as farmgate prices improve.
From September, the Muller non-aligned milk price will have increased by 48.2% compared with the same month last year.
In a bid to help its dairy farmers cope with volatility and future uncertainty over support payments Muller will introduce two new initiatives in the coming months.
Final details of the Muller Direct Futures Contract option, which will give producers the opportunity to lock in a monthly price for up to 25% of their milk volume across a 12 month period, will be announced in early August.
The processor is also creating a new service for its dairy farmers called Muller Farm insight.
It will offer non-aligned producers data, welfare tools and benchmarking, to help develop farm businesses and will be available in the autumn.
“There is a lot of uncertainty out there but we are optimistic,” said Muller agricultural director, Rob Hutchison.
Emphasis on British
“Britain remains one of the best places in the world to produce milk and Muller is investing heavily to ensure that consumers will be able to buy more and more dairy products made in Britain with milk from British farmers.”
Mr Hutchison added: “We want to work with farmers to realise our shared ambitions as the basis of a progressive industry with the security and confidence to invest.
“The steps we are outlining today are early measures which signal our intent.”