Milk buyer Meadow Foods is to increase the milk price it pays dairy farmers by 1p/litre from 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 suppliers, regardless of their specific contract. It takes Meadow’s standard litre price above 25p/litre.
Simon Chantler, Meadow Foods’ executive chairman, said: “We give careful consideration to any price increase to ensure it is as large and sustainable as possible.
“With rising costs hitting dairy farmers, we are having frank discussions with our customers to ensure they understand the extreme pressures farmers are under and we hope to be able to further improve on this price in future, but our best efforts will not be sufficient to achieve this unless the market as a whole moves upwards.”
Meadow Foods has annual sales in excess of £260m, supplying milk and balancing services to the liquid sector, plus an ingredients business based at three manufacturing sites in Chester, Peterborough and Yorkshire.