DAIRY co-operative First Milk is to pay its farmer members an extra 2p a litre from Saturday, September 1.
The increase will take its standard litre price to 20.6ppl and will affect 2,800 producers who supply about two billion litres of milk, mainly to First Milk's cheese business.
Gwyn Jones, National Farmers' Union dairy board chairman, welcomed the announcement as the first proper price increase by one of the major players. He said: "It is more in line with what farmers should be expecting, given the current strength of market conditions."
Peter Humphreys, First Milk chief executive, said farmers deserved a sustainable and profitable price.
He said: "In this dynamic environment, our flexibility is key and we are in a strong position to continue to move our milk price upwards."
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