SUPPLIERS to farmers' co-operative First Milk and independent dairy group Meadow Foods have been cheered by news of a rise in milk prices.

As a result of strengthening markets and improved business performance, First Milk has confirmed that its member prices will rise by between 1ppl and 1.1ppl from October 1.

Meadow Foods has announced that it will be increasing its milk price to suppliers by 1ppl from November 1, taking their standard A litre milk price to 31ppl.

Both groups have a number of suppliers in west Wales.

Mark Chantler, chief executive, at Meadow Foods, commented: “This latest move is a further reflection of the strengthening milk market and our commitment to pass back to you any positive price improvements as soon as possible. Going forward we will continue to monitor the situation very closely and hope that its continued improvement will allow us to move our price further forward in due course.”

The increase will be added to the flat rate element on the price schedule. The company’s B price for August was 35ppl and projects the range for September to be between 33ppl and 36ppl.

First Milk chairman Clive Sharpe commented: “We are pleased to announce our third consecutive price lift and expect to be able to deliver further increases on members’ milk price based on the strengthening market plus productivity improvements and efficiencies across First Milk.”