Aldi is increasing the price it pays for fresh milk by between 1 and 1.25 pence per litre in response to tightening UK milk supply and increased production costs.

The price rise comes into effect on 1 June.

The discounter said it was part of its efforts to back “moves by milk processors to pay dairy farmers more per litre for the milk they produce” and was intended to “help UK dairy farmers address pressures following falls in UK milk supplies and increases in production costs”.

A spokesman added: “We are working closely with our suppliers to support the livelihoods of UK dairy farmers. This involves continuously reviewing pricing to ensure it is fair, competitive and transparent. The price increases are a positive step and we will continue to work with UK dairy farmers to ensure a fair deal for them as well as our shoppers.” 

Last August, Aldi increased its farmgate liquid milk price by 2ppl in response to dairy farmer protests.