First Milk has become the latest milk company to cut the price it pays dairy farmers for their milk.
From 1 February, it has decided to reduce its core milk price by 0.75p/litre, taking a standard litre to 24.3p. It is the second cut by the co-op in as many months and means that overall its price has fallen by 2p/litre since the start of the year – a similar sized decrease to those recently announced by Robert Wiseman Dairies, Arla and Dairy Crest.
First Milk chief executive Peter Humphreys blamed February’s cut on continued pressure on dairy commodity prices.
“Despite the protection that the exchange rate provides, the decline in dairy prices around the world is now affecting every sector in the UK market,” he said.
“This has led to a situation where even though milk production in the UK continues to drop, falling global dairy prices combined with a substantial rise in imports coming into our market, is pushing the price of raw milk downwards.
“While we always look to minimise price reductions to our members, unfortunately in this case we cannot avoid the dynamics of the market.”