UK dairy processor Muller has raised its standard litre milk price by 0.75p/litre from 1 June.
The increase takes the price paid to Muller Direct’s 700 producers to 26.75p/litre, reflecting strengthening returns from wholesale cream and butter markets.
Average UK bulk cream wholesale values increased by 8% in April to 2,080/t, while butter rose by 10% to £4,660/t, according to AHDB Dairy.
Concerns over milk supply pushed dairy prices up in April, according to the levy board, as weather continued to blight an already wet spring.
Muller also announced it was recruiting producers to its Direct group following investments to increase production capacity at its Telford, Severnside and Foston processing sites.
The processor said the recruitment would continue to facilitate its strategy of displacing imported products with British ones.
“We are pleased to see market returns improving after a challenging period, and to be able to reflect this in a higher milk price,” said Rob Hutchison, Muller’s milk supply director.
“Muller’s proposition for farmers is designed to be simple and clear, and it has been the subject of considerable innovation, underpinned by a desire to build a better future in the dairy industry supply chain.”
Mr Hutchison added, “The recently launched Muller Direct fixed-price contract, futures contract option and Next Generation initiative for younger farmers have been well received and are now driving real change in our industry. We intend to continue breaking the mould going forward.”