Chester-based Meadow Foods has announced a 1.67ppl increase in the farm-gate price paid to its producers. The company said that, as the rise is not linked to any specific targets, all of its producers would benefit from the increase in pay.

The price increase announced by the independent dairy group, which will come into effect from 1st October, comes after a 1ppl rise for producers in April. Following the increase, Meadow Foods’ standard litre prices will be 28.38ppl for producers in Cheshire, Shropshire, Staffordshire, Lancashire, North Wales and South Wales to and 28.46ppl in Cumbria.

The group said its sales teams would be negotiating with customers to inform them of the continually escalating costs faced by dairy producers in the hope that, through securing more money for its dairy farmers, production could increase over the autumn and winter.