Dairy Crest is putting up the amount it pays its dairy farmers for their milk, with the headline price to rise by 1.5ppl to 31.5ppl.

Dairy Crest said the price change reflected the upward movement of dairy markets “as a result of lower than usual seasonal milk production”.

Group procurement director Mike Sheldon said: “We are pleased to be able to increase our Liquid milk price at this time. The start of the new milk year has not been easy for farmers and milk supply is not surprisingly becoming tighter. Markets are now responding and this upward movement will also be reflected in the milk price generated through our Formula Contract over the coming months.”

The company also said it was introducing a new volume incentive scheme for farmers on Liquid contracts. It added it was still in discussions over the milk price for its cheese business.

Also today, Arla Foods said it was increasing the milk price for Arla Milk Link farmers by 1.06 pence per litre.