Members of the farmer-owned First Milk business, which includes 2,800 farmers in England, Scotland and Wales, will benefit from the 2p a litre increase from 1 September.

Demand for dairy products on the international market is behind the increase. First Milk has warned there may be a decline in milk supplies towards the end of the year.

First Milk said that in strong market conditions, it was in a good position to keep moving prices upwards, The Scotsman reported.