First Milk has today announced that its milk price will increase by 1.4ppl from 1 July and by a further 3.05ppl from 1 August.
This will take its milk price on a manufacturing standard litre to 43.45ppl from July, and 46.50ppl from August, including the member premium.
The UK dairy co-operative said it "recognises that the rate of increase in our milk price may be slower than some others, given the scale of market change".
"This is purely a timing issue, and our business model enables us to recover inflationary costs and market movements from our customers over time," said Robert Craig, First Milk vice chairman.
“We remain completely focused on continuing to pass on these returns through the milk price to our members as soon as they are affordable.”
Dairy farmers supplying Muller who meet the conditions of the processor's Advantage scheme will also see a substantial milk price increase, of 4.5p per litreto 46p per litre from 1 July.
Elsewhere, Chester-based Meadow Foods will increase its milk price by 3.75p per litre to 46p per litre.