Meadow Foods isincreasing its milk price by 1.15ppl from October 1, taking its standard A litre to 21.15ppl.
It also revealed its B price for September will be ahead of the 25ppl forecast and will be 26ppl. Meadow Foods also estimated the B price for September will be no lower than 27ppl.
The milk price move came as the firm unveiled a major investment from US-based Paine and Partners which Meadow bosses claimed would enable the firm to keep growing.
Simon Chantler, executive chairman at Meadow Foods, said: “These [milk price] increases continue to move our price forward, but we realise that more work has to be done. We hope the current positivity within the market continues, and we will make every effort to return any improvements as quickly as possible to our producers.”
Last month, Meadow Foods also announced that they had written to its 550 farmers to reassure them that the company would not be penalisng them for any under supply during these challenging times.
Meanwhile, the investment from Paine and Partners will see the Chantler family remain a substantial shareholder and it said there were no plans to change the executive management or the broad structure of the business.
The Pickering family will exit as shareholders in Meadow Foods.
US-based Paine and Partners exclusively invests in food and agribusiness companies and has a team of 25 investment, operations and finance professionals focused on investing globally across the food and agribusiness value chain and throughout cycles.
Mr Chantler said: “This investment represents a new and exciting phase in the continued development of our business and will open new avenues of opportunity for all of our producer partners, customers and employees.”
Dexter Paine, chairman, chief executive and a founding partner of Paine and Partners, added: “In Meadow Foods, we are making a strategic investment in an industry leader that we believe is poised for continued growth.
"Meadow Foods’ experienced management team and employees have built a blue-chip customer base with a well-deserved reputation for innovation and reliable delivery of the highest-quality products.
"We see opportunities to drive growth both organically by increasing production, enhancing capabilities and expanding into new product lines and markets, and through strategic acquisitions that leverage the company’s supply network and customer relationships.
"The two most important assets to a business are its people and reputation, and Meadow Foods is exceptional in both of these areas. We are very excited to work with the team to execute its strategy for growth.”