Dairy co-operative First Milk is going to be paying farmers more next month.

Suppliers in its Lake District milk field will receive one pence per litre (ppl) more in September, taking the amount they are paid to 28.93ppl.

The cooperative says the increase is the result of strengthening milk markets.

Last month, the farmer-owned firm wrote to members detailing plans to discontinue A&B pricing and individual transport charges, plus introduce a production bonus.

These changes, aimed at incentivising milk production to meet growing customer demand, will also be implemented from Friday.

First Milk chairman Clive Sharpe said, “Many members met our new CEO Shelagh Hancock at farm roadshows across the UK earlier this month.

"At these meetings she detailed the strong platform that we have in place, as well as further opportunities to improve productivity within the business.

"Work on a range of business improvements is currently being implemented, and the benefits will be returned to members in future milk price increases.”

Vice-chairman Nigel Evans added: “We hope this second consecutive milk price increase, along with the positive changes to our member payment schedules, will give our farmers confidence as we move into the autumn.”