Farmers who supply Tesco’s Sustainable Dairy Group (TSDG) will see a further milk price increase amid 'unprecedented levels of on-farm inflation'.
The group, set up in 2007 and now consisting of 520 farmers, will see their milk price jump from 41.59p per litre to 46ppl in July.
The latest increase comes after prices were increased by close to 20% earlier this year.
A TSDG spokesperson said the price increase comes against the backdrop of "continued volatility in the dairy sector".
"It is hoped the rise will help to address the current unprecedented levels of on-farm inflation," the spokesperson added.
The price the retailer pays its farmers for milk is independently set on a quarterly basis and takes into account inputs such as feed, fuel and fertiliser.
Dairy farmers supplying Muller who meet the conditions of the processor's Advantage scheme will also see a substantial milk price increase, of 4.5ppl to 46ppl from 1 July.
First Milk announced that its milk price will increase by 1.4ppl from 1 July and by a further 3.05ppl from 1 August.
And Chester-based Meadow Foods will increase its milk price by 3.75ppl to 46ppl.