Around 220 dairy farmer members of the CDG will receive the 0.35 pence per litre price increase from 22 April, 2013.

The decision to increase the premium above the milk price paid by The Co-operative Group’s fresh milk supplier, Muller Wiseman Dairies, was taken following discussions with CDG representatives.

Steve Murrells, Chief Executive, The Co-operative Food, said: “We have taken the decision to increase the premium we offer on milk after talking to our CDG members, who have had to contend with the effects of an extremely poor winter and the impact this has had on costs.

“While the retail sector in which we operate faces many challenges, we are committed to supporting British farming and we believe this is the right course of action as we continue to build relationships with our farmers and ensure they receive a fair price for their milk.”