Meadow Foods will pay a price rise of 0.5p/litre from 1 January. The increase will be paid to all farms supplying the processor and makes its standard litre worth 28.88p/litre from the start of next year.
“This price increase will hopefully inject some much needed momentum into the market and putting the increase on the flat rate will ensure all our producers will receive the full increase,” said executive chairman Simon Chantler.
Meadow Foods has paid increases totalling 4.87p/litre on its standard litre price in the last 10 months and is looking for new suppliers for its sites at Chester, Peterborough and Holme-on-Spalding-Moor.
It is the UK’s largest independent dairy group with annual sales in excess of £300m and supplies dairy-based ingredients to food manufacturers in the UK and continental Europe.