Farmer-owned co-operative Organic Herd has announced its milk price for August will jump by 3 pence per litre.
This means the dairy co-op's milk price in effect from 1 August will be 54ppl, it confirmed today.
The price is around 14p per litre above the current conventional milk prices, making it the highest price so far announced for August by a processor or co-op.
Martyn Anthony, Organic Herd’s chief executive, said that demand for organic dairy was 'strengthening' while supply remained 'relatively constrained'.
“The positive demand led picture for organic dairy is very much linked, we believe, to an upturn in consumer confidence as the impact of the cost of living crisis, and particularly food price inflation, has started to wane.
"This means that consumers are now not only focused on value when it comes to the weekly shop but also they are looking for values in terms of how their food is produced.”
Looking forward, Mr Anthony said the prospects for the organic dairy sector and further farmgate milk price rises were 'positive'.
He added that the co-op was now recruiting new farmer members to help meet increased demand from both domestic and export customers.
"There are clear market signals that demand for high quality British organic milk and dairy products will continue to strengthen while at the same time production is likely to remain constrained.
"This, combined with Organic Herd’s commitment to delivering a sustainable price and strong premium above that of conventional production, will we believe enable our Members to grow their milk production."
