First Milk has announced it is to follow its competitors in dropping the price it pays its members for milk by 0.75ppl with immediate effect.
“In early July, we confirmed that we would hold our milk price until we were clear on further moves by our major customers, Wiseman Dairies, Dairy Crest and Lactalis,” said Peter Humphreys, chief executive of First Milk.
He added: “Over the last few months, we have now seen our major customers cut their prices by between 0.9ppl and 1.25ppl. Against this backdrop, in order to minimise the impact on our members, we have negotiated with our customers and looked at all areas of our business to make internal savings. Indeed since June, we have absorbed a reduction in the price we are receiving, rather than pass it on to our members.
“However, after the latest round of cuts announced in July, we are now unable to resisit the pressure to move our price. The Fist Milk board therefore have recently decided that we must cut our milk price by 0.75ppl from 1 August.”