Tesco has announced that it will increase its milk price to its suppliers from 41.59p/L to 46p/L for July 1.
This price increase is the second one in three months following on from a 20% milk price increase for suppliers in May.
The milk price increase reflects the rising on-farm costs that farmers have faced and the “continued volatility in the dairy sector”.
Along with Tesco, First Milk has announced that its member milk price will increase by 1.4p/L from July 1, 2022, and by a further 3.05p/L from August 1, 2022.
This will take its milk price on a manufacturing standard litre to 43.45p/L from July 1, and 46.50p/L from August 1, including the member premium.
Commenting on the announcement, Robert Craig, farmer director and vice chairman, said:
“We recognise that the rate of increase in our milk price may be slower than some others, given the scale of market change.
“This is purely a timing issue, and our business model enables us to recover inflationary costs and market movements from our customers over time.
“We remain completely focused on continuing to pass on these returns through the milk price to our members as soon as they are affordable.”
