Meadow Foods has announced a milk price increase of 3 pence per litre for its farmer suppliers, starting in the new year.
The announcement by the Chester-based firm means that all producers will see their standard litre milk price rise to 33ppl.
The new rate for the equivalent manufacturing litre will be 33.625 pence per litre, starting from 1 January 2022.
Meadow Foods is a major supplier of value-added ingredients to the food industry which processes more than 550 million litres of milk each year.
Mark Chantler, its chief executive said: "We are aware of the inflationary costs our farmers are facing and continue to work closely with our customers to reflect these inflationary pressures.
"We will continue to closely monitor the markets and will return any price increases to our farmer suppliers as soon as possible.”
Dairy processor Muller has also announced a price increase from 1 January amid 'rapidly rising on farm production costs'.
Farmer suppliers who follow its Advantage programme will see their milk price rise to 33p per litre.
Elsewhere, co-op First Milk said its standard litre price will rise to 34p per litre.
Robert Craig, First Milk vice chairman said: “We are acutely aware of the huge inflationary cost pressure that our farmer members face this winter.
"Whilst this increase is undoubtedly a positive step, we will continue to work hard with our customers to recover increased costs from the marketplace."
Farmers who supply Medina Dairy will also see a 3ppl increase in January, upping the standard litre price to 32.8p per litre.
