Dairy farmers who meet the conditions for the Müller Advantage programme will receive a milk price of 32p per litre from January 1 – a 2p increase.
The programme, which has seen 99.5 per cent of eligible supplying dairy farmers commit to it, aims to improve supply chain collaboration, herd health and reductions in environmental impact.
Rob Hutchison, chief operating officer at Müller Milk & Ingredients, said: “The whole dairy supply chain is facing into increased inflationary pressure, and we know that our supplying farmers are seeing rising production costs.
“With markets strengthening, we wanted to make farmers aware of this decision as early as possible, giving them the information to support forward planning over the winter period.
“We will of course continue to monitor supply and demand in the coming months.”
Müller has operations in Shropshire at Market Drayton, Minsterley and Telford.