UK dairy co-op First Milk has decided to reduce its milk price by 1.25p/litre from 1 March.
The price drop will mean its 900 suppliers will receive between 26.84p/litre and 28.32p/litre dependent on milk pool (see table below).
Dropping for the second consecutive month, the First Milk price has now fallen by 2.5p/litre since January to the lowest levels seen since August 2017.
“As we’ve said in recent months, the weaker dairy market has impacted our revenue and we can only pay a milk price that relates to our returns,” said vice chairman and farmer director, Jim Baird.
He added: “We know that this further milk price drop will be disappointing to our members and continue to do all we can to mitigate the market conditions.”
|Milk pool||March 2018 price change||February 2018 price|
|Midlands & East Wales||-1.25p/litre||27.15p/litre|
“Today’s price news is disappointing given the strengthening seen in commodity markets of late, said NFU Scotland, Milk Committee chairman, John Smith.
“These price falls must not spark a repetition of previous downward spirals where producers are left to carry all the burden.”
Mr Smith added: “The Grocery Code Adjudicator is in discussion with the industry; Post-Brexit we need contractual arrangements that promote fairness across the whole dairy supply chain and protect it from bully boy tactics.
“In the meantime, if a little restraint is shown by producers to ease to volumes, particularly in the next couple of months, then supply and demand will turn the price back in producers’ favour.”