Dairy farmers supplying Milk Link are to get an extra 1p/litre from next month.


The increase, which follows Tesco’s price rise yesterday (24 March), takes Milk Link’s standard litre price for manufacturing and liquid milk to 27p/litre.

In addition, a further 0.3p/litre will be added to the member base price from 1 April to compensate for a 0.3p/litre decrease in the Milk Link production bonus – which, as announced in June 2010, will fall from 0.8p/litre to 0.5p/litre from the start of April.

The Milk Link Board also confirmed the current 0.5p/litre member investment “levy” would end from 1 April for all members who joined before 31 March 2009. Those who joined after this date will continue to pay the levy until they accumulate a minimum of three year’s worth of contributions into their member capital account.

“The milk price increase and end of the investment levy will provide a much-needed boost to our members’ farm incomes and cash flow, at a time when they are under considerable financial pressure due to on-farm cost inflation,” Neil Kennedy, Milk Link chief executive, said.

“The increase is a result of our successfully securing price increases, combined with strong ongoing returns from the commodities markets.

“The withdrawal of the investment levy is a key milestone for Milk Link and our members. It marks the fact that the business has established strong financial, operational and commercial foundations on which to build going forward.”