Milk Link announces increase to milk price and returns to members

Milk Link has announced a 0.75ppl increase to its milk price.

The rise, effective from 1 April, will apply to the processor’s standard and organic milk. It’s Channel Island milk will see a 0.4ppl rise while the processor’s London liquid milk will see a 0.5ppl rise.

Milk Link said the price rise reflected the strong returns it was generating from the commodity markets, particularly skimmed milk powder and whey.

The processor also announced it has increased the amount it would pay to members for their processing interest payment by 20%.

The payment, relating to the returns generated from Milk Link’s processing activities in 2006 and 2007, will rise from £2m to £2.4m, representing a 7% return on qualifying loans.

Distributed to its 2000 members, a farmer holding an average number of qualifying loan rights should receive a payment of about £1200.

Barry Nicholls, Milk Link chief executive, said the increase in returns demonstrated the processor’s commitment to growing the business and returning more benefits to its members.

“The majority of the milk price increase relates to the improved revenues we are generating from the Skimmed Milk Powder and Whey markets,” he said.

“We are continuing to work hard to obtain increases from other parts of the market including cheese and long life milk and hope that we will be able to deliver further returns to our members in due course.”