Milk processor company Medina Dairy has announced price increases and a planned closure to its Watson’s Dairy site after being hit hard from ongoing the coronavirus crisis.

Increases in the company’s milk prices will jump by 1p per litre, charging an average of 25.75p per litre from 1st September.

Despite the sales increase, increase, Medina Dairy says this reflects a more positive market environment while also trying to recover from lost sales.

This marks the fourth consecutive price rise since June but says that prices will return to pre-coronavirus levels in the future.

Lockdown and the closure of the hospitality sector across the UK has also resulted in the decision to to shut their Watson’s Dairy site in Hampshire, leaving 144 jobs at risk.

Median Dairy said that the move is part of a streamline and money-saving strategy with sales in April being “almost zero” and the need “to create a more sustainable and appropriately scaled business”.

Sheazad Hussain, chief executive of Medina Dairy, said: “It is with much regret, that we have announced our proposal to cease operations at our Watson’s Dairy site.

“The proposal follows a major review of our business which concluded that by simplifying and consolidating our processing activity we will be able to create a more sustainable and appropriately scaled business.

“This in turn will enable us to continue to deliver a high level of service to existing customers and provide a platform from which we can respond to future market opportunities.”

The announced closure is expected not have an impact on any of its 156 farmer suppliers and customers as production at Watson’s is being proposed to be transferred to its others sites.

These include Buckley’s Dairy in West Yorkshire, Severnside in Gloucestershire and the Acton dairy in west London operated by Freshways, Medina’s processing partner.