23 April 2001
Milk Group unveils 1.8p price rise

by Robert Harris

THE Milk Group has announced a 1.8p rise in its standard litre price through higher butterfat and protein payments.

The increase means a 2000 litre-a-day producer with 4.1% butterfat, 3.3% protein and average hygiene standards will receive 20.65p/litre.

The price rise, backdated to 1April, followed significant progress made in the April selling round, said chief executive Robert Audas.

We have won new, added-value business enabling the movement of more milk into fresh, premium-branded product categories.

We have also increased the volume of milk we sell into higher earning monthly markets and will increase the volumes over the next 12 months.

Chairman David Stern said the latest increase would help producers, but more was needed to secure long-term viability and growth.

He added: We will increasingly be looking to our own processing activities for improved producer returns.

The new pricing schedule changes the payment of volume bonuses.

It removes deductions for milk collections below 1000 litres and introduces new bonus payments for collections above 1500 litres a day.

Bonuses rise 0.1p/litre in 500-litre steps to 0.8p/litre for 7000+ litres.