Weak dairy markets prompt another milk price cut

First Milk has cut members’ April milk prices by between 0.33p/litre and 0.97p/litre.

Continued weak market conditions had again affected prices within the mechanisms the co-op had in place with its customers, in turn reducing the income for all its milk fields, said Paul Flanagan, First Milk’s external relations and membership director.

See also: Arla knocks almost 1p/litre off April milk price

The co-op also introduced a simplified milk price schedule from 1 April, increasing members’ A volume allocations from 80% to 90%.

The new pricing schedule includes a lower proportion of milk price being paid on protein and butterfat by reducing hygiene and volume bonuses in creamery milk fields. For balancing pools, a greater proportion will be paid on the base price, also paid for through lower hygiene and volume bonuses.

First Milk members March B litres price has been confirmed at 13p and the co-op is forecasting 12-14p/litre for April B litres. 

Co-op Arla has also cut its April price by almost 1p/litre, while Tesco (cost of production contract) and Muller have announced further cuts for May.

First Milk members recently learned that the cash they have loaned to the business is to be converted to shares.

First Milk April prices

1 excludes Tesco supplement (latest supplement was 4p/litre in February)

2 excludes Scottish government transport payment (equates to 0.57p/litre)