This increase takes place in the wake of Dairy Crest's milk price increase last week, which saw farmers receive a two pence increase for milk that was produced for cheese.

However, for First Milk members, which make up the UK's largest dairy farming co-operative, the pay increase comes into effect from milk that was sold in October and November.

Last week First Milk's chief executive John Duncan conveyed his disappointment at the exclusion of backdated milk form November and October in Dairy Crest's proposal to increase milk prices for farmers, claiming that not everyone would be satisfied with the decision.

In a statement delivered yesterday, Duncan concluded that the backdated increase "is only the start. We must continue to exert pressure on the other processors to catch up, and must look for a similar increase in the liquid price".