First Milk drops liquid and manufacturing prices

Dairy co-op First Milk has cut its liquid milk price by 1.75p/litre and its manufacturing price by 1.25p/litre.

Farmers in the manufacturing pool will be paid 29.6p/litre from 1 August and those in the smaller liquid pool will receive 28.75p/litre.

First Milk’s decision follows Arla’s 1.23p/litre price drop for July last week and Dairy Crest’s announcement that it would hold both its liquid and Davidstow manufacturing prices for August.

See also: First Milk drops manufacturing price for July

First Milk chairman Sir Jim Paice MP said the impact of dramatically falling returns for dairy commodities and the ongoing effects of a big spring flush lay behind the lower milk prices.

He said the board was just as anxious as the co-op’s members to see the end of cuts.

“While we cannot control global and European market prices, the board of First Milk is working hard to improve the situation and has reduced overheads considerably and will continue to do so,” he said.

“We are constantly analysing prices from various dairy markets to ensure we move milk around where possible to maximise returns.”