First Milk announces further milk price increase - Farmers Weekly

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First Milk announces further milk price increase

First Milk has announced a round of 0.5p/litre milk price increases for implementation between December and January.

Farmers supplying the liquid pool will receive 29.15p/litre from 1 December – this follows a 1p/litre increase in October and 1.6p/litre rise in November.

Those supplying both the cheese and balancing pools will receive 28.5p/litre from 1 January onwards.

The 0.5p/litre cheese pool increase follows a 1p/litre increase in November and a 0.75p/litre increase from 1 December.

Producers supplying the balancing pool will see their 0.5p/litre increase delivered in two stages – 0.25p/litre on 1 December and 0.25p/litre on 1 January – following on from a 0.75p/litre increase in November and a previously announced 0.65p/litre increase for 1 December.

First Milk chairman Bill Mustoe said: “The liquid market has been bouncing around over the past six months. As recently as July, some companies were announcing prices of below 25p/litre, but there has clearly been increases since then, supported by a mix of tight volumes and stronger cream returns. With cheese stocks now tightening, we fully expect market prices for cheese to strengthen in 2013.”

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First Milk announces further milk price increase

First Milk’s 2800 members will be paid a further 0.5p/litre for their milk from July.

Peter Humphreys, the dairy co-op’s chief executive, said the increase was in anticipation of improved prices its cheese business would receive in the coming months.

“We want to pass these returns onto members now,” he said.

First Milk has also immediately suspended its policy of withholding payment to members on over-quota milk for the remainder of the current quota year.

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