First Milk is to pay an extra 1.1 pence per litre to farmers whose milk goes into manufacturing to ease pressure caused by the weather.

A 0.6ppl increase will take effect on 1 July and a further 0.5ppl will be paid from 1 August.

First Milk recognised its farmer members’ expectations on milk price were high and that there continued to be pressure on farm costs due to weather, said chairman Bill Mustoe. “Our objective as always is to move the returns that we pass back to members as far and as fast as we can.”

First Milk’s business strategy remained focused on investing in added value, through acquisitions and joint ventures, investing in its processing assets and investing in brands like its Lake District Dairy Co brand, Mustoe added.

Farmers are facing weather-related difficulties, such as a lack of forage material, meaning they have to buy in more feed.

Farmers in First Milk’s manufacturing pool see either all or part of their milk go into cheese production.