First Milk announces milk price increase

Dairy farmers supplying First Milk are set to receive an extra 0.6p/litre for six months, backdated from 1 April.

First Milk has announced a 0.3p/litre increase to the price it pays to members for liquid milk.

The dairy has also suspended 0.3p/litre of members’ capital contribution for six months from 1 April.

Richard Greenhalgh, chairman of First Milk, said the price increase was a result of increased returns from the liquid market and was an “initial step” in increasing the milk price between now and the autumn.

“On the liquid side, Tesco has set the benchmark and we are in discussions with our processor customers to ensure this momentum is maintained in the liquid sector and that our members’ receive the benefit,” he said.

“On cheese, we are working directly with our retailer customers to improve our milk into cheese price. 
“Our aim is to achieve increases across the markets in which we operate as quickly as possible, and this remains our first priority.”