First Milk lorry collecting milk from farm© FLPA/John Eveson/REX/Shutterstock

UK dairy co-op First Milk has increased its milk price by between 1p and 1.1p/litre from 1 October.

The processor’s 900 producers will receive a single rate of between 28.9p and 30.05p/litre dependant on milk pool, after First Milk scrapped B prices from the start of September.

The start of October will also herald other pricing changes for the processor, including a 0.5p/litre bonus on all litres exceeding production volumes higher than the previous 12 months, and the axing of individual transport charges where they currently apply.

See also: What are the prospects for UK dairy trade post Brexit?

The co-op told Farmers Weekly in August the 0.5p production incentive would be in place indefinitely.

The processor’s move to every-other-day collection (EODC) will be implemented in all milk pools from 1 April 2018 in an effort to drive transport costs down.

October milk prices changes

Pool

October increase

October pool price

Midlands and East Wales

1.1p/litre

28.90p/litre

Scotland

1.1p/litre

28.59p/litre

Haverfordwest

1.0p/litre

30.05p/litre

Lake District

1.0p/litre

29.93p/litre

“We are pleased to announce our third consecutive price lift,” said First Milk chairman Clive Sharpe.

He added, “We expect to be able to deliver further increases on members’ milk price based on the strengthening market plus productivity improvements and efficiencies across First Milk.”