Sainsbury’s will increase the milk price it pays farmers in its dairy development group to 31.59 pence per litre in the new year.

The new price will come into effect on 1 January. At present, farmers in the Sainsbury’s Dairy Development Group are paid 30.66ppl.

A spokeswoman for Sainsbury’s said the price increase was communicated to all dairy farmers in a letter earlier this week.

Sainsbury’s milk price increase comes after the major dairy processors recently announced their standard-litre prices would go up. Arla farmers have been paid 28.83ppl since 3 December – a 1.3ppl increase on the previous price – while Müller Wiseman farmers moved up 0.5ppl, to 29.5ppl, on 1 December. A further 1ppl increase, to 30.5ppl, will follow in February.

Dairy Crest, meanwhile, is moving its standard liquid and Davidstow milk prices to 30ppl and 30.25ppl from 1 January – up by a respective 1ppl and 1.25ppl – and First Milk farmers will receive 0.5ppl more for supplying into the co-op’s cheese and balancing pools, with both prices moving to 28.50ppl. First Milk liquid pool farmers have been receiving 0.5ppl more (29.15ppl) since 1 December.

Milk prices have also been moving at retail level for the first time in many months. Last week, Tesco increased the price of four pints of its standard own-label milk from £1.18 to £1.29; it has since been followed by Sainsbury’s and Waitrose. Morrisons is selling four pints for £1.49, while Asda is selling for at £1 [BrandView.co.uk].

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