First Milk has today (5 May) announced it has cut the price it pays its farmer suppliers by 1p/litre from 1 May.
The move follows a 1.25p/litre cut last month and means the co-op’s standard litre is now worth just over 22p/litre. Robert Wiseman Dairies, Milk Link and Parkham Farms all announced similar-sized cuts last week.
First Milk chief executive Peter Humphreys said further drops in the liquid milk market (where around 60% of the co-op’s milk goes) and continued pressure on cheese prices, particularly from imports, were the main reasons behind the price cut.
“The market will continue to be tough in the short-term, however we are starting to see some positive signs,” he said. “Firstly, global ingredients prices have stabilised over the last few weeks. Secondly, our cheese brands are making good progress in terms of gaining listings and delivering volume growth.
Mr Humphreys said the co-op was “urgently reviewing” its cost base and sales streams to improve returns passed back to members.