Aldi is to increase the amount it pays its processors for milk from next month to allow them to increase payments to farmers.

The German-owned discounter would not reveal how much more it will be paying but said the move would contribute to a price increase of 29.5p per litre – up from 27ppl – from 1 October for non-aligned farmers supplying through Arla. Those supplying through Robert Wiseman Dairies will receive 29ppl – up from 26.43ppl – from 15 October.

Other retailers are also believed to have increased payments to allow Arla and Wiseman to pay farmers more.  

Aldi said it welcomed any move that benefited UK dairy farmers.

“We understand the pressures dairy farmers are facing and believe all farmers should receive a fair price reflective of the costs of milk production,” a spokeswoman said.

On 1 August, Aldi increased the price it paid for milk by 2ppl, becoming the first of the major discounters to do so. That followed widespread protests throughout the country after processors cut milk prices whilst farmers’ costs were rising.

Despite the two increases, the discounter would “keep milk retail prices competitive for consumers”, the spokeswoman vowed.