Gwyn Jones, NFU dairy board chairman, said strengthening commodity prices and increased global demand for dairy products meant dairy farmers should “build on their attempts” to command improved milk prices.

“There is a lack of ambition in getting higher prices,” Mr Jones said. “But dairy farmers can call for an increase because there is nowhere else for milk buyers to get their milk from.”

Mr Jones comments come after it was announced Tesco is set to increase its milk price in September, a month earlier than timetabled.

The supermarket announced in April that its milk suppliers with direct contracts would receive about 22p/litre and pledged to review the price every six months.

Source: Fwi