Milk Link announces milk price increase - Farmers Weekly

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Milk Link announces milk price increase

Milk Link has increased its milk price by 4.6p/litre.

The rise, which will take effect from October, means the dairy co-op’s members will receive about 24p/litre.

Any “marginal” or “B” litres will be worth over 30p/litre.

Members on a manufacturing contract will be paid via higher butterfat and protein payments.

Increased customer returns

Those with liquid contracts will see their base price increase.

Chief executive Barry Nicholls said: “The latest rise reflects our success to date in securing increased returns from our customers.

“With regard to our processing , the Milk Link board has reiterated its confidence that the business will also be able to deliver at least a 10% return on members qualifying loans,” he added.

Milk Link announces milk price increase

Dairy farmers supplying Milk Link are set to receive an increase of up to 1.20p/litre after the dairy announced it will lift its milk price from next month.

Members of the dairy’s supply group will receive an extra 0.75p/litre from 1 August.

A further 0.3p/litre bonus will be paid between 1 October and 31 March 2008 on all litres, provided production is at least the same level or above last year’s production on a month by month basis.

The dairy also announced its ‘B’ price for December is set to increase to 130% of the ‘A’ price.

‘Positive’

This meant the dairy would pay about 24p/bitre for all ‘B’ litres produced between 1 September and the end of 2007.

The ‘B’ price would also increase to 100% of the ‘A’ price in the first three months of 2008, the dairy added. The changes to the ‘B’ price total a further 0.15p/l increase.

Barry Nicholls, Milk Link chief executive said, said the latest increase, combined with rises in April and July, means its milk price had increased by 2.65p/litre in recent months,

“We remain very positive about our ability to deliver further returns to Milk Link members later in the year,” he added.

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