Sainsbury’s plans to increase the price it pays dairy farmers by 1.97p/litre to 34.15p/litre from 1 October.
Farmers supplying the retailer via the Sainsbury’s Dairy Development Group will receive the cost-of-production-based price for October, November and December.
The quarterly price is based on a cost tracker formula from Kite Consulting that looks back at key costs in recent months. These include feed, fuel and fertiliser.
The Sainsbury’s price announcement comes at a time when dairy farmers are protesting amid calls for a milk price of about 34p/litre.
Earlier in the month, Muller Wiseman Dairies confirmed its formula price for the three-month period from October would be set at 34.55p/litre.