First Milk announces February price increases

From 1 February, First Milk will raise the price for each of its three main milk pools. The cheese pool price increases by 1.25 ppl, balancing pool by 1ppl, and the liquid pool price moves up by 0.25ppl.  First Milk chairman, Bill Mustoe commented: "These moves reflect our achievement of better returns from the cheese and ingredients markets, allied to the results of a continued drive on efficiencies within our own business.

"In contrast, we are particularly disappointed that returns from the liquid market have been static. As soon as ongoing price negotiations with our liquid processor customers are completed, we will pass any additional funds we secure back to members.

"In 2010 we steadily improved our milk price. These increases today, on top of the return on investment we paid out to members last week, are a clear demonstration of our commitment to do the same in 2011."

For further information, please contact Paul Flanagan, Group communications director, 07767 241452.

Notes for editors

Following these increases, the standard litre price for each milk pool will be as follows: Cheese: 24.52ppl; Balancing: 24.27ppl; Liquid: 23.88ppl

Additionally from 1 February, the Board has decided to reduce the Highlands & Islands bonus to 0.5ppl, in order to provide a more appropriate balance between the Highlands and Islands price and the returns paid to other cheese milk fields. The combined result is a net 0.75ppl increase in milk price for Highlands & Islands producers from 1 February to a standard litre price of 24.98ppl.

25 January 2011