Dairy co-op First Milk has announced a 0.5p/litre price rise for August, while Arla Foods is holding its current price for July.
First Milk’s price increase applies from 1 August and takes its manufacturing standard litre to 31.0p/litre. The price includes the member premium payment for milk with 4.2% butterfat and 3.4% protein.
For the current milk year, the member premium is being held at 0.5p/litre, payable to those who have reached their capital target. The payment is made at the end of each milk year and for 2020-21 was worth £4,800 to the average member.
It is First Milk’s fourth consecutive monthly rise and vice-chairman Robert Craig said the uptick was due to capital investments in efficiency and productivity at its processing sites.
“We continue to deliver solid business performance and this increase reflects our aim to maximise our returns to members, particularly at a time when we know input costs are increasing at farm level,” Mr Craig said.
Arla price hold
Meanwhile, Arla Foods has announced on-account prices for conventional and organic milk will remain unchanged from 1 July. However, after adjustments due to currency value changes, the hold actually represents a 0.03p/litre reduction.
It means when applied to the standard manufacturing litre Arla’s milk price will be 33.20p/litre for conventional and 41.56p/litre for organic milk.
Prices are based on every-other-day collection in the top-quality band and a 1m litre annual supply at 4.2% butterfat and 3.4% protein. For a standard litre at 4% fat and 3.3% protein, the price will be 31.95p/litre.
Arla Foods board director Arthur Fearnall, said: “Overall, commodity market prices have remained relatively stable in May.
“Powder prices have increased, butter prices have weakened, and cheese prices have been stable. European milk intake has picked up with a small increase in April and May. The current outlook remains stable.”