Milk buyer Meadow Foods is to increase is farmgate milk price by 1p/litre from 1 April.
The move comes shortly after a 1p/litre rise announced last week for 1 March. The increase will be added to the flat rate element of the price paid to farmers and will therefore benefit all of Meadow’s dairy farmers, regardless of their specific contract. It takes Meadow’s price above 26p/litre for 1 April 2011.
Simon Chantler, Meadow Foods’ executive chairman, said: “we are continuing very robust conversations with our customers to ensure they are fully aware of the desperate need for milk price increases, due to the escalating costs facing producers.
“We recognise these cost increases have lead to a critical situation and failure to move prices will mean producers will be forced to exit the industry at unprecedented levels, leading inevitably to a shortage of milk.”
Meadow Foods has a record of pushing prices up ahead of the market and lead the charge in 2007 when prices rose dramatically.
Meadow Foods has total sales in excess of £260m. The business supplies milk and balancing services to the liquid milk industry. It also has an ingredients division based at manufacturing sites in Chester, Peterborough and Yorkshire.