Dairy Crest is to pay more for milk for cheese but peg its liquid milk price. The amount of the increase will be agreed early this month and payments will be backdated to July 1.
Milk purchasing director Arthur Reeves said: ‘‘We have already agreed increased cheese prices with some customers and are close to finalising further increases, which we will pass to suppliers.
“We have not achieved all the middle ground increases we had anticipated when we increased our [liquid milk] prices in March and April.
“At our regular meetings with milk suppliers we have shared detailed information on this subject and will continue to monitor the impact on both them and us.”