Meadow Foods has announced that it will be increasing its milk price by 1ppl from June 1, taking their standard A litre milk price to 27ppl.

Th rise will be added to the flat rate element of Meadow’s price schedule, ensuring every producer benefits from it.

The company has been closely monitoring the dairy markets and believes they are beginning to strengthen again, mainly due to improved cream prices and the effect the poor weather has had on production volumes across Europe, so far, this spring.

Mark Chantler, chief executive at Meadow Foods, comments: “We are pleased to pass on the improvements in the market to our farmers just as soon as we can. We are now also looking to recruit a number of producers to meet the ever increasing demand for Meadow’s products.

"This is an exciting time for the business as we grow and extend our product range and reach, so I would encourage producers to take a fresh look at Meadow Foods and to see what we have to offer you.”

Meadow Foods is the UK’s largest independently owned dairy group and leading supplier of quality dairy ingredients to the food industry.

The award winning company operates from accredited sites in Chester, Peterborough and Holme-on-Spalding Moor where they manufacture for some of the UK’s best known food manufacturers.

Meadow Foods currently employs more than 275 people and handles in excess of 650 million litres of milk each year direct from over 650 farmer suppliers from across the UK.

First Milk recently announced it was holding its milk price for May. This means that the liquid standard litre price remains at 26ppl, or 26.88ppl on a manufacturing standard litre.

Jim Baird, vice chairman and farmer director, said: “The fact that we are able to hold our milk prices for May will be welcome news for our members following such a late spring.

"We will continue to drive business performance to deliver more stable and competitive returns to our members.”