First Milk to double member premium to 0.5p/litre

Milk producers who trade with farmer co-operative First Milk will see their member premium double to 0.5p/litre for milk produced from April 2020.

The bonus payment was introduced at 0.25p/litre from April this year, with members receiving the first top-up payment after 12 months.

The full rate is paid to members who are fully invested in the business and is pro-rata adjusted, based on members achieving their capital target.

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A fully paid-up member producing 1m litres/year will therefore see a payment of £2,500 next April but £5,000 in April 2021.

First Milk said the increased payment reflected the improving financial position of the company and recognised and rewarded the loyalty of longstanding members.

It is in the process of streamlining its operations which will include the sale of Scottish creameries.

The company held its liquid and manufacturing prices steady in October for the fourth consecutive month for its 800 members, despite price cuts from some other processors.