First Milk announces milk price increase - Farmers Weekly

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First Milk announces milk price increase

Dairy co-op First Milk is set to increase the price its pays its 2800 suppliers by 2p/litre.

Farmers will now receive 25.1p/litre for a standard litre of milk from 1 November.

The co-op’s marginal price – milk produced in excess of 80% of last year’s average daily production – will increase to 35.1p/litre. 

Chief executive Peter Humphreys said: “We have worked hard to get a fair price for our members from this marketplace.

“Since April, we have been able to increase our core milk price by 8ppl on a cumulative basis.

“I can assure our members that we will continue to work on their behalf to deliver a profitable and sustainable milk price.”

First Milk announces milk price increase

First Milk is set to increase the amount it pays its members from next month.

Members will receive 20.6/litre for standard milk from 1 September, an increase of 2p/litre.

The dairy co-op’s marginal price for September increases to 28p/litre.

Strong market conditions

First Milk members in the Scottish Highlands and Islands area will see their standard litre price increase to 21.9ppl, while their marginal price for September moves up to 29.5ppl.

Peter Humphreys, First Milk chief executive, said the increase reflected the current strong market conditions.

‘Significant move’

NFU Scotland welcomed the “significant move” but said there was a long way to go before milk prices reflected the farmgate price.

“NFUS is maintaining pressure on the supply chain to deliver, especially in light of increasing production costs and the impact of the weather which has reduced milk production on-farm,” Jim McLaren, NFUS president, said.

Keep pace with increases

“Feed wheat prices have been rocketing with reports of prices hitting £145 a tonne for delivery into feed mills.  That compares with just over £80 per tonne this time last year. 

“It is therefore essential that the farmgate milk price rises substantially just to keep pace with these cost increases.”

First Milk announces milk price increase

Dairy farmers supplying First Milk are set to receive a further boost next month as the processor announced it is set to increase its milk price.

In the fifth increase in as many months, the processor said it would pay its members an extra 0.5p/litre from 1 August.

Peter Humphreys, First Milk chief executive, said the dairy had been holding a firm line with its customers in order to drive up its members’ milk price.

“In our negotiations we are very clear that significant price increases are necessary to reflect the current market situation,” he said.

“Our milk price remains under constant review, and with the current market for milk likely to move prices on strongly, we are well placed to allow our members to benefit.”

First Milk announces milk price increase

Dairy farmers supplying First Milk are set to receive an extra 0.6p/litre for six months, backdated from 1 April.

First Milk has announced a 0.3p/litre increase to the price it pays to members for liquid milk.

The dairy has also suspended 0.3p/litre of members’ capital contribution for six months from 1 April.

Richard Greenhalgh, chairman of First Milk, said the price increase was a result of increased returns from the liquid market and was an “initial step” in increasing the milk price between now and the autumn.

“On the liquid side, Tesco has set the benchmark and we are in discussions with our processor customers to ensure this momentum is maintained in the liquid sector and that our members’ receive the benefit,” he said.

“On cheese, we are working directly with our retailer customers to improve our milk into cheese price. 
 
“Our aim is to achieve increases across the markets in which we operate as quickly as possible, and this remains our first priority.”

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