Dairy processor Meadow Foods has increased the amount it will pay farmers for a litre of milk as it begins a recruitment drive.
The company, which operates a factory in Third Drove, Fengate, where it employs 70 people, has increased the amount it will pay farmers for a litre of milk by one pence to 27 pence per litre.
The move comes as the firm looks to recruit more milk producers to meet the demand for its products.
The company says its believes the diary market is strengthening mainly due to improved cream prices and the impact of poor weather on production across Europe.
Mark Chantler, chief executive at Meadow Foods, said: “We are pleased to pass on the improvements in the market to our farmers just as soon as we can.
“We are looking to recruit a number of producers to meet the ever increasing demand for Meadow’s products.
“This is an exciting time for the business as we grow and extend our product range and reach, so I would encourage producers to take a fresh look at Meadow Foods and to see what we have to offer.”
Meadow Foods currently employs more than 275 people and handles more than 650 million litres of milk each year direct from over 650 farmer suppliers from across the UK.
Its Peterborough factory is home to Meadow Foods’ Fresh Division where it processes and packs fresh creams, milks and cultured products for food manufacturers.