First Milk is cutting its farmgate liquid milk price by 1.7p/litre and its balancing pool price by 0.9p/litre from 1 August.
Falling returns from customers in the liquid market have forced the cuts, taking the co-op’s liquid price to 24.35p/litre and balancing pool to 25.2p/litre.
First Milk’s cheese pool price will stay at 26.25p/litre but there is growing market pressure in this sector, said the company.
“It is hugely frustrating to see further reductions from the liquid sector, which give us no option but to move our milk prices to reflect the impact these have on our co-op. I am under no illusion as to the effect these price reductions will have on our members’ businesses and their confidence in the dairy industry as a whole,” said chairman Bill Mustoe.
“The strategy for First Milk remains unchanged; we believe the route to a long-term sustainable future for farmers is through accessing a broader range of products and markets. The price cuts we have seen over the last few days make us more certain than ever of our chosen path. We will continue to move at pace and drive First Milk to another level of breadth and diversification in order to deliver greater returns to our farmers.”
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