First Milk has increased the standard litre price paid to producers in its cheese and balancing pools by 0.6p/litre to 26.12p/litre.
In addition to the increase, which is effective from 1 May, the co-op will also pay a 3% return on members’ investment with the June milk cheque. This follows strong trading performance in the six months to March and is in addition to the 3% January payment. The co-op said the total 6% return on investment payments would be worth £1,320 to a typical 1m litre producer.
“The business is continuing to turn in good numbers every month and this provides us with the flexibility to make announcements like this one today,” First Milk chairman Bill Mustoe said.
“The international contract we launched with Eilers & Wheeler has generated a lot of interest and we have a number of other things in the pipeline to build on the strong platform we now have in place.”
The current standard litre price for producers in First Milk’s liquid pool is 26.2p/litre.