Dairy manufacturer Müller UK has announced an increase in its milk prices for farmers part of the Müller UK’s Advantage scheme.

The new price will be 42.75p per litre, which marks a 0.5p increase effective in September 2025 which is aimed to support farmers amid rising costs.

Richard Collins, head of agriculture at Müller Milk & Ingredients, said: “We are pleased to be in a position to increase our farm gate milk price for September, ensuring our supplying farmers continue to receive a stable and competitive price.”

He added: “As always, we will continue to monitor supply and demand.”

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The news comes amid rising prices across the grocery industry, with food inflation going up by 4% in July as pressure mounts on household shopping.

Retailers in the industry are also urging the Government to reconsider adding higher business rates and national insurance fees as part of the next autumn Budget.

According to retail executives, the proposed plans will lead to a push in inflation and a slowdown in hiring as well as more job layoffs to offset the extra costs.

Farmers in the UK also expressed concern about the new inheritance tax, which will lead to a 20% levy against inherited agricultural land worth more than £1m starting from April 2026.

The M&S agriculture boss recently cautioned that the inheritance tax may deter young people from joining the industry.