The UK’s largest independently owned dairy group, Meadow Foods, has increased its standard A litre milk price by 0.85p/litre.
The processor will pay its 650 producers 30p/litre for A litres with a constituent content of 4% butterfat and 3.3% protein from 1 October.
As of next month, Meadow Food’s A prices will have increased by 42% over the past 12 months.
Meadow Foods’ B price for August was 35p/litre and the processor estimates it will be between 33p/litre and 36p/litre for September as a result of strengthening markets.
In August, Meadow Foods completed the takeover of Fayrefield Liquids and told Farmers Weekly that the vast majority of Fayrefield producers had now moved on to Meadow contracts and would benefit from this price rise.
Meadow Foods chief executive Simon Chantler said: “The market remains strong and this latest rise reflects our desire to pass on any additional increases to our producers as soon as we are able.
“We continue to watch the market closely and hope that its continued improvement will allow us to move our price further forward in due course.”