First Milk has followed other major milk processors by cutting the price paid to its farmer suppliers from next month.
Its liquid pool price will fall by 1.85p to 26.05p/litre, the balancing pool price by 1.4p to 26.1p/litre, and the cheese pool price will be cut by 1.25p to 26.25p/litre.
The co-op blamed falling returns from liquid, whey and powder markets, but chairman Bill Mustoe said it was committed to “mitigating the market factors as much as possible” by developing more added value business.
First Milk recently bought Manchester sports nutrition company CNP Professional and has also entered into a joint venture with New Zealand co-op Fonterra to make better use of whey produced at its Lake District creamery.
“I fully recognise the impact that this price reduction will have on our members’ farm margins, particularly given the current farm cost trends,” Mr Mustoe said.
“The global demand for dairy, which has been hit by some short term over-supply, will recover and returns will be strong in the long-term. At First Milk, we continue to build on our partnerships and acquisitions to create greater, more stable returns for our farmers.”
|Summary of main milk price cuts|
|Processor||Latest price cut (p/litre)||Standard litre price from 1 June|
|Robert Wiseman Dairies||2.0||26.42|
- Tell us what you think about the latest round of price cuts by commenting below, or going to our forums.