Farmers supplying the firm will see their milk price increase by 0.75 pence per litre from June 1st.

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The move takes the Müller Direct standard litre price to 26.75 pence per litre, thanks to an improvement in returns from wholesale cream and butter markets.

Milk prices have been on a downward spiral so far this year, caused by global wholesale cream and butter values deteriorating in the previous six months.

The company has also confirmed plans to recruit farmers to join its 1,700 strong Müller Direct group following investments made at its Telford, Severnside and Foston sites.

Rob Hutchison, Müller's Milk Supply director, said: "We are pleased to see market returns improving after a challenging period, and to be able to reflect this in a higher milk price.

"Müller's proposition for farmers is designed to be simple and clear, and it has been the subject of considerable innovation, underpinned by a desire to build a better future in the dairy industry supply chain.

"The recently launched Müller Direct Fixed Price Contract, Futures Contract option and Next Generation initiative for younger farmers have been well received and are now driving real change in our industry. We intend to continue breaking the mould going forward."