British dairy farmer cooperative Milk Link has announced Wed (Jun 9) a 0.75p (US¢1.09)/litre increase in the price it will pay its 1600 farmer suppliers from next month.

From July 1 the co-op's standard litre price for manufacturing milk will rise to 24.5p (US¢35.64)/litre and liquid milk will be worth 24.72p (US¢35.96)/litre. There will also be an average 0.5p (US¢0.73)/litre increase in the price paid to 600 non-member "direct" dairy farmers, most of which supply the Llandyrnog Creamery in north Wales.

"As a farmer-owned co-operative we are absolutely focused on adding value to our members milk, maximising returns from the market and passing this back to members as quickly as possible," chief executive Neil Kennedy, said.

"Our latest price increase reflects a further improvement in our customer and product mix and success in securing improved returns from the market. Demand for British dairy products, and in particular cheese, is strong while at the same time stocks are continuing to tighten," he added.

Milk Link's price increase came on the same day it announced a strong set of financial results for the year ended April 3.

The co-op grew turnover slightly to GBP550 million (US$799.8 million) and increased earnings before interest, tax, depreciation and amortisation by 1.7% to GBP29.2 million (US$42.46 million).

Kennedy said the strong performance had come despite extremely difficult trading conditions, especially in the cheese market where imports of cheap cheese combined with "deep and sustained discounting" by major Cheddar brands had eroded value from the market.