Dairy Crest has announced a 1ppl increase to its milk price from 1 September
This brings the Davidstow core milk price to 22.72ppl.
Dairy Crest said the rise ensures it remains one of the most competitive milk prices in the UK.
Ruth Askew, head of procurement said Dairy Crest wanted to reflect falling UK milk production in their price as soon as possible.
"We are proud that the Davidstow contract has remained one of the most competitive milk prices in the UK throughout extreme downward pressure on the supply chain," she said.
"We hope that this positive news will provide our farmers with some confidence as we head into the Autumn.
"We are confident our business strategy is creating exciting opportunities to add value to milk produced by British farmers, such as our move into production of Infant Formula ingredients.
"The strength of our portfolio of market-leading brands, including Cathedral City, in addition to our new product streams, ensures we offer a secure, sustainable and growing partnership model for our supplying farmers."
Dairy Crest Direct Chairman Steve Bone added: “As a dairy farmer and chairman of DCD, I am very pleased that Dairy Crest is increasing the milk price by 1ppl from September 2016.
"This has further enhanced their position, paying a leading market price for milk for cheese."
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