More milk price woes as First Milk latest to drop

 UK dairy co-op First Milk has decided to reduce its milk price by 1.25p/litre from 1 March.

The price drop will mean its 900 suppliers will receive between 26.84p/litre and 28.32p/litre dependent on milk pool (see table below).

See also: Three consecutive drops as Arla slashes March milk price

Dropping for the second consecutive month, the First Milk price has now fallen by 2.5p/litre since January to the lowest levels seen since August 2017. 


 “As we’ve said in recent months, the weaker dairy market has impacted our revenue and we can only pay a milk price that relates to our returns,” said vice chairman and farmer director, Jim Baird.

He added: “We know that this further milk price drop will be disappointing to our members and continue to do all we can to mitigate the market conditions.”

Milk pool March 2018 price change  February 2018 price  
Midlands & East Wales -1.25p/litre 27.15p/litre
Haverford West -1.25p/litre 28.32p/litre 
Scottish Mainland -1.25p/litre 26.84p/litre
Lake District -1.25p/litre 28.2p/litre

“Today’s price news is disappointing given the strengthening seen in commodity markets of late, said NFU Scotland, Milk Committee chairman, John Smith.

 “These price falls must not spark a repetition of previous downward spirals where producers are left to carry all the burden.”  

Mr Smith added: “The Grocery Code Adjudicator is in discussion with the industry; Post-Brexit we need contractual arrangements that promote fairness across the whole dairy supply chain and protect it from bully boy tactics.

“In the meantime, if a little restraint is shown by producers to ease to volumes, particularly in the next couple of months, then supply and demand will turn the price back in producers’ favour.”