Milk delivery prices rising

Doorstep milk deliveries in Shropshire will rise by as much as 5p a pint this week as processors struggle to cope with rising production costs and the fallout of a poor British summer.

Milk giant Dairy Crest, which runs the creamery in Crudgington on the outskirts of Telford, was unable to say how much of the increase would be passed on to the farmer.

But Robert Purvis, managing director of Creamline, which distributes dairy products to milkmen across the Midlands, said the price increases would mean farmers would get a far better price for their milk.

He added: "There have been some other problems in the dairy supply chain - such as the drought in Australia and other major production countries - which has driven the cost up."

A spokeswoman for Dairy Crest said: "The company has always been one of the better payers but I cannot say whether farmers will see a benefit from the price increase directly or indirectly."

The Milk Development Council said farmers receive about 15p for every pint of milk costing 40p, dairies receive 10p and retailers make 15p.

A pint of milk has already risen to a record high in supermarkets - with most companies pushing their price up from 35p to 40p. Doorstep deliveries can be as much as 48p.

Shrewsbury MP Daniel Kawczynski, chairman of the all-party parliamentary committee on dairy farming, said: "Obviously there have been huge increases in costs that dairy farmers have been facing recently.

"But what does concern me is that supermarkets have put up prices without passing on the advantages to the farmer."