Freshways has announced a six-month milk price guarantee until at least the end of March 2022 in a bid to give its suppliers more certainty.
The dairy processor, based in Acton, London, has increased its milk price to 1.5p per litre from 1 October, along with a pledge not to lower it for at least six months.
The milk price boost takes Freshways' liquid standard litre price to 30 pence per litre as of 1 October.
The business has also recently commenced a milk recruitment campaign seeking potential new suppliers.
The news follows other dairy processors increasing their milk prices for October, including Muller, Arla, Barber's and Medina Dairy.