First Milk has become the latest milk buyer to announce a cut in its milk price, blaming falling international dairy markets for the move, with a 0.75p/litre reduction coming into effect in January.
This means the price for a liquid standard litre (4% butterfat, 3.3% protein) will fall to 27.75p/litre from the new year.
This equates to 28.69p/litre for a manufacturing standard litre (4.2% butterfat and 3.4% protein).
It follows 1p/litre price falls for January from both Muller and Barber’s.
This is the first price drop for First Milk members since the co-op harmonised its milk price in April.
“International dairy commodity markets have been falling in recent months, which has impacted on our returns and resulted in this milk price reduction,” said Jim Baird, First Milk vice-chairman and farmer director.
“There were some positive signs in a recent [Global Dairy Trade] auction, but as we look forward into 2019 the medium-term direction of the market remains unclear.”
Mr Baird said after eight months of stable or increasing prices for members, he recognised the decrease would be disappointing.
“Our underlying business performance continues to be on plan, and we will continue to do all that we can to minimise any negative impact from the market and provide our members with as much stability as we can, whilst delivering on our growth strategy to delivery dairy prosperity for our members.”