Muller has increased its milk price by 1.50ppl for September, taking the Muller Direct standard litre price to 29.50 pence per litre.
Despite the move Muller still lags behind Arla which raised its price to 31.38ppl from August 1.
Rob Hutchison, Muller’s Milk supply director, said the weather had put the whole supply chain under pressure.
"On the demand side we have seen the value of bulk cream and butter decline with exceptionally hot weather across Europe also contributing to subdued demand for liquid milk, affecting market returns," said Mr Hutchison.
“However, farmers are suffering the effects of the dry, hot weather, with many already feeding the first cut of silage to cows. There is uncertainty over how quickly fields will recover to provide grazing and whether there is enough winter feed.
“Under these circumstances we want to do what we can to support our farmer suppliers. It is fair to say that the whole supply chain is currently under considerable pressure.”
Muller held its price at 28ppl for August, citing negative returns for cream and butter.