From October 1 the cost of a pint of milk will rise by five pence to 65 pence, two pints from £1.20 to £1.30 and a litre from £1.00 to £1.05.

It is the first increase to the cost of a pint of milk since June 2012.

The Milk Marketing Committee (MMC), which has the legal power to set milk prices, considered recommendations made by the Isle of Man Milk Marketing Association (IoMMMA).

Chaired by Geoffrey Boot MHK, Minister for Environment, Food and Agriculture, the MMC includes three lay members of the Office of Fair Trading, who represent consumers and three Manx milk producers.

Before agreeing with the IoMMMA’s recommendation to increase prices, the committee considered many factors including market trends, production costs, impact on the consumer and retail competitor activity.

Minister Boot said: ’It is important that consumers have a reliable source of fresh milk and dairy farmers receive a fair return. The committee was persuaded by the case put forward and therefore agreed to support the milk price increase.’

Creamery managing director Findlay Macleod said: ’With no increase to milk prices since 2012, this small increase is an essential part of keeping our local dairy industry viable in these extremely challenging times.

’The restrictions implemented during Covid-19 have impacted all businesses and ours is no exception. Although we have gained many additional doorstep customers on-island, we have incurred significant increases in our operational costs, and faced many commercial challenges within the dairy market.’

The cost of the 200ml milk cartons provided to schools will also increase by two pence to 21 pence from January 1, 2021.