First Milk announces milk price increase

First Milk is set to increase the amount it pays its members from next month.

Members will receive 20.6/litre for standard milk from 1 September, an increase of 2p/litre.

The dairy co-op’s marginal price for September increases to 28p/litre.

Strong market conditions

First Milk members in the Scottish Highlands and Islands area will see their standard litre price increase to 21.9ppl, while their marginal price for September moves up to 29.5ppl.

Peter Humphreys, First Milk chief executive, said the increase reflected the current strong market conditions.

‘Significant move’

NFU Scotland welcomed the “significant move” but said there was a long way to go before milk prices reflected the farmgate price.

“NFUS is maintaining pressure on the supply chain to deliver, especially in light of increasing production costs and the impact of the weather which has reduced milk production on-farm,” Jim McLaren, NFUS president, said.

Keep pace with increases

“Feed wheat prices have been rocketing with reports of prices hitting £145 a tonne for delivery into feed mills.  That compares with just over £80 per tonne this time last year. 

“It is therefore essential that the farmgate milk price rises substantially just to keep pace with these cost increases.”

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