DESPITE warnings that milk price increases could give some producers a false sense of security and tempt them to up herd sizes, prices in excess of 30pence per litre are now a reality for some.

Dairy Crest is the latest to up the ante, announcing that it will increase the price it pays to its Davidstow farmers by 2p per litre from October 1, on top of the 1p increase it made in September, bringing their price to 31ppl, in a move agreed with its producer group Dairy Crest Direct.

Group procurement director Chris Thomson said: "As the market continues to strengthen, we want to reflect this in the price we pay to our farmers.

“We are proud that the Dairy Crest contract has paid a leading milk price over many years and in particular, over the last 12 months. We hope that the new price for October, on top of the previously announced increase for September, comes as welcome news to our farmers.”

DCD chairman Steve Bone commented: “We are pleased that DCD has reached agreement with Dairy Crest on this further increase to the milk price giving our members greater confidence as we head into autumn.”

Meanwhile, producers with Bridge of Allan-based Grahams Dairies will get a 1p per litre rise from September 1, taking their standard litre price to 28.75p per litre.