6 September 2002

United Milk ups ex-farm price

UNITED Milk has increased its ex-farm price by 1p/litre for August milk, taking its standard litre to 15p.

It is the second such price rise in two months, and the company says the move reflects better performance at the companys £45m butter/skimmed milk powder plant at Westbury, Wilts.

The new factory has suffered a series of setbacks during the commissioning process, but chief executive Don Morris said performance and output had improved in August.

The plant is now running about six weeks behind schedule, rather than the two months reported recently.

"We acknowledge there is a long way to go before our suppliers will be back in real profit. But there are better signs from the market place. "Butter and skim milk powder prices appear to be firming and the long-term forecast is that this trend will continue."

United Milk is still at the bottom of our milk price table, though it has closed the gap on major co-op contracts to 0.6-1p/litre. &#42