UK family-owned milk and cheese producer Wyke Farms has become the latest dairy processor to announce increases in its supplier milk prices.

The Somerset company said it would be raising the price it pays for milk to 27.5p per litre.

"We remain committed to growing our brand and sharing our success with the farmers, we benefit from a good, consistent supply and want to offer a sustainable price in return," said managing director Richard Clothier.

Earlier this year, Wyke Farms warned that reduced milk supplies could result in a UK cheese shortage, urging UK retailers and wholesalers to keep dairy prices rising. Richard Clothier said that without substantial price increases, milk would be lost to exportable commodities and cheese supplies would become "desperately short". 

"Increasing prices must be the main vehicle for improving the confidence of UK dairy farmers in the future viability of their dairy enterprises and of the need to invest to ensure some growth in milk output to meet market needs," Clothier said.