UK co-operative First Milk has announced its milk price will increase by 0.25p per litre from 1 January 2021.
This means that its liquid standard litre will increase to 28.0ppl, whilst its manufacturing standard litre will increase to 28.93ppl, both including the member premium.
It has also confirmed that for the milk year commencing 1 April 2021, its member premium will remain at the current level of 0.5ppl for members who have reached their capital target.
Robert Craig, First Milk vice-chairman, said uncertainty in dairy markets 'had continued' as a result of the Covid-19 restrictions and uncertainty on the UK and EU relationship.
"Whilst these challenges may impact future returns, First Milk has continued to perform well, and we remain focussed on passing back as much as we can afford in the milk price," he said.
"In this time of ambiguity, we know our members value stability, which is why we are also pleased to confirm that our member premium will continue at the current rate in the next milk year.”
