First Milk signs off A&B pricing with milk price rise

Dairy co-op First Milk has raised its A price by between 0.5p/litre and 0.9p/litre for non-aligned producers, from 1 August.

The increase will mean the co-op’s 900 dairy farmers in its four pools will be paid between 26.39p/litre and 27.77p/litre on the processor’s standard litre.

First Milk’s B price will remain at 25p/litre for its final month before it is scrapped altogether in favour of a single rate for all litres.

See also: Muller raise September milk price 

The start of September will also mark the introduction of the processor’s new production bonus scheme.

The 0.5p/litre bonus will be paid on all litres produced over the same month 12 months ago, and will be in place indefinitely.

First Milk communications and milk supply director, Paul Flanagan, indicated strengthening markets and increases in competitors’ pricing meant a further milk price rise for next month was likely.

“Given our prices are largely based on a basket mechanism, other processors price rises strengthen the indications for a September price rise.”

Mr Flanagan added that members had been supportive of the changes to how the co-op’s milk is priced and for the certainty provided by the amendments.

Milk pool

August A price change (p/litre)

August A price (p/litre)

Midlands & East Wales

+0.9

26.70

Lake District

+0.5

 26.98

Scottish Mainland

+0.9

  25.84

Haverfordwest

+0.5p

 26.39

Haverfordwest includes 0.67p/litre Tesco supplement

Upcoming webinar

SEPTEMBER
30

What does the future of farming look like post Covid-19 and Brexit?

Register today