First Milk increases milk price - Farmers Weekly

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First Milk increases milk price

First Milk has announced that it will increase the price it pays farmers in its cheese and balancing, and Highlands & Islands, milk pools by 0.25p/litre from next month.

It takes the revised standard litre prices to 21.65p/litre and 22.35p/litre respectively.

The increase is a result of new commercial deals and further cost management within the company’s cheese business, chairman Bill Mustoe said.

“Despite operating in a marketplace where prices have been broadly static in 2010, we have been successful in generating additional returns internally through cost savings, improved efficiency and a better mix of products in the market.

“Delivering these returns has allowed us to add £8m to our milk fund in 2010 already through moves in February and April.”

He said the price increases showed the benefit of First Milk’s move towards market-related pricing, which provides more transparent prices based on market returns.

“We will move the milk price up again for each of our milk pools as soon as we have further improvements in net returns,” Mr Mustoe said.

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First Milk increases milk price

First Milk has increased its October milk price by 2.5p/litre and says there is more to come.

The move takes the co-op’s standard litre to 23.1p/litre.

Marginal milk (production in excess of 80% of last year’s average daily production) will rise to 32.3p/litre.

Chief Executive Peter Humphreys said it was crucial farmers received a sustainable price to ensure the country had adequate supplies of milk and to counter spiralling on-farm costs.

“Given the mix of markets in which we are operating, we would anticipate being able to lift our price by a further 2p/litre from 1 November,” said Mr Humphreys.

First Milk increases milk price

First Milk has increased the price it pays to members for liquid milk by 0.15p/litre from 1 May.

The rise, resulting from improved returns from whey and skim-milk powder, follows a 0.45p/litre rise earlier this month and the suspension of the 0.3p/litre capital contribution payment for six months from 1 April.

“The latest increase shows when we have good returns we pass it straight back to members,” a First Milk spokesman said.
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