The move will take their standard A litre milk price to 26.75ppl. The change will apply to the flat rate element on the price schedule.
Despite some initial worries over forage stocks this winter, milk volumes are significantly ahead of previous years, the company said.
Market prices had been holding up due to lower milk production on the continent, however, both UK and European milk volumes have now started to pick up pace.
This increased volume has resulted in the price of cream falling from £1.70 to below £1.50 per kilo in the last two weeks alone.
Mark Chantler, Chief Executive of Meadow Foods, comments: “Despite holding our price for consecutive months, the increased volume of milk on the market and reduced price of cream has forced us to react to market pressures.
“As we head into the flush, we will continue to closely monitor volumes and how they will impact the market as well as the potential effects of Brexit.”
Meadow Foods is the UK’s largest independently owned dairy group and works with over 650 farmer suppliers.
Source: Farming UK