MILK producers with Müller UK will see a 1.5 pence-per-litre increase to their milk price from August 1, taking their standard litre price to 27.69p.

In addition to this, suppliers to Müller will also benefit from a retailer supplement payment which, for the months of June and July, is estimated to be around 0.3ppl.

As the milk price continues to rise in August, the company warned that the retailer supplement, introduced to support farmers during a period of very low milk prices, will be a little lower, with the actual supplement for that month to be confirmed in September.

Müller’s agriculture director Rob Hutchison said: “Against a backdrop of very healthy increases in the market value of globally traded dairy commodities, we are now starting to realise improved returns which we can reflect in a higher milk price for August.

“If the market can sustain these higher values, we are confident that this will help to drive higher farm gate milk prices in the months ahead. It is important to stress that the Müller milk price will always be less impacted by violent swings in commodity dairy market values," he said.

“By investing heavily to add value to milk in the UK we can offer a competitive milk price at every point in the market cycle, not just when markets are strong. We will continue to monitor both market returns and our direct milk supply volume and review our position with the MMG farmer board as we move towards the trough period.”

Meanwhile, First Milk has announced that its member B price will go up by 1p per litre from July 1, with a stand on its A price until August 1.