31st October 2014
With effect from 1st December 2014, First Milk will reduce the price for its liquid pool by 1.4 pence per litre and for its manufacturing pool by 1.8 pence per litre.
Chairman Sir Jim Paice MP commented:
"The major reason for this drop is that liquid and cheese returns have fallen over the last month. With cheese specifically, this impacts not only on what we are selling now, but on the price that we can sell our cheese stocks in the future.
"Additionally, we have been processing the majority of surplus milk supplied this year into skimmed milk powder. Returns from this market have declined further over the last month as many companies, particularly in mainland Europe, have increased stocks.
"The harsh reality is that prices are continuing to fall for dairy products everywhere in the world. As a board we have to balance the interests of individual farm businesses with the interest of the business owned by the same farmers. We have to set prices which reflect what we can achieve for the eventual product.
"We will continue to take whatever steps we can to reduce the impact of these negative market conditions, and ensure that the business is in the best possible shape when the market turns."
Notes to editors
About First Milk
First Milk is the UK's only major dairy company, 100% owned by British farmers. It supplies a wide range of dairy products and dairy ingredients to customers in both national and international markets including block cheeses, soft cheeses, raw milk, butter, skimmed milk powder, whey proteins and sports nutrition brands.
It is headquartered in Glasgow with seven manufacturing sites across England, Scotland and Wales.
First Milk's aspiration is to provide consumers with great-tasting nutritious food, while delivering value for every part of its farmers' milk. As a business with a passion for innovation and sustainability, it is constantly seeking fresh ways of working with partners across the supply chain to drive pioneering solutions.
For further information on First Milk, please visit www.firstmilk.co.uk or follow the company on Twitter @first_milk and YouTube www.youtube.co.uk/firstmilk1.
For media enquiries, please contact:
M: 07984 349936
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