First Milk announces farmgate price rise
Dairy processor First Milk has announced a 2.6p/litre rise in farmgate milk prices.
The increase will be paid to producers in its liquid milk pool, dairy farmers in the company’s balancing pool will receive a rise of 1.25p/litre.
A First Milk statement said: “Due to the fact that increased returns from the marketplace will be staggered over October and November, the company will move the liquid pool price in two stages. A 1p/l rise will be applied from 1 October and the remaining 1.6p/litre from 1 November.
“The balancing pool price will also move in two stages with the first of 0.5p/litre beginning on 1 October followed by 0.75p/litre on 1 November.”
The company also announced a payout of 3% return on members’ capital account balances in October.
This was due to “a solid trading performance in the six months to March 2012”, the statement said.
When combined with the return on capital payment, that members received in January, and a dividend payment in April, First Milk claimed that it had paid out a 9% return on investment for active and retired members during 2012.
“This equates to a return of £2,700 across the year for an average 1 million litre producer,” the company reckoned.
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