DAIRY processors First Milk and Meadow Foods have announced May milk price rises, breaking the 40p threshold.

Exceptional cost inflation has led to First Milk, owners of the Lake District Creamery at Aspatria, and Meadow Foods to announce record farmgate milk price rises to their producers.

First Milk has confirmed an additional 2.9p/litre increase for May 2022, on top of the previously announced 1p/litre rise for the month.

This puts its manufacturing standard litre at 40.5p/litre, inclusive of the members’ premium and regenerative farming bonus.

Robert Craig, a Cumbrian dairy farmer, farmer director and vice-chair at First Milk said: “Exceptional cost inflation continues to be felt on farm and we are working hard to return additional income to our members as fast as we can.

“There is a growing need to see an enduring step-change in dairy prices that recognises the true value of milk, and we will continue to do all we can to deliver this.”

Meadow Foods has announced that it will be increasing its milk price by 4.5ppl from May 1 2022, taking its standard litre milk price rise to 41ppl, an equivalent manufacturing litre will be 41.625 ppl.

This is an industry leading price for May and new record level for Meadow Foods.

Jim Bebb, Supply Chain Director at Meadow Foods, comments: “This is a significant increase and one that we hope will help support our producers as they continue to face huge inflationary costs on farm. This increase as been made possible by both the improved prices we have been able to achieve for our quality dairy ingredients and continued positivity in the market.

“This latest move means we have increased our milk price by 8ppl since January this year and we are committed to passing back any further increases as soon as we are able. We continue to work closely with our customers to ensure they fully recognise the pressure producers face and the impact these will have on milk supply in the months ahead. This move also shows a new positive intent from Meadow Foods.”

Meadow Foods is a leading supplier of value-added ingredients to the food industry. The award-winning company employs more than 400 people across four BRC AA accredited sites where it processes more than 550 million litres of milk each year.