Meadow Foods has announced a milk price increase of 1p per litre and 2ppl for June and July respectively.
The price will rise by 1ppl from 1 June for producers covering Cheshire, Shropshire, Staffordshire, North Wales, Derbyshire, Worcestershire and Yorkshire, taking their standard A litre price to 26ppl.
Producers located in Cumbria, the Lake District and South Wales will see an increase of 2ppl taking their standard A litre milk price to 24ppl.
All changes will apply to the flat rate element on the price schedule, the dairy firm said.
It also said that farmers located in those three regions will see a further boost of a minimum of 1ppl from the 1 July, taking their standard A litre milk price to 25ppl.
Mark Chantler, chief executive of Meadow Foods, said that over the last month, the market had remained 'extremely challenging' due to the pandemic.
“By delaying the announcement of our June milk price, we have had a better opportunity to understand how the current Covid-19 crisis is impacting on the dairy markets.
“Over the last month we have seen that the market remains extremely challenging, however there have been improvements to the price of cream, butter and skim.
"We will continue to monitor the markets closely and hope to be able to continue to pass any additional improvements on to producers as soon as possible.”
Meadow Foods is a supplier of value-added ingredients to the food industry. It processes more than 550m litres of milk each year from 650 farmers.