Peter Humphreys, chief executive of First Milk commented, "The economic environment has changed significantly over the past few months. Likewise conditions in the global dairy markets, which drove UK milk prices upwards in 2007 and 2008, have now deteriorated markedly.
Milk prices in mainland Europe have declined over the past few months and this is now having an impact on the UK. As a consequence, the First Milk Board has reluctantly decided that we must cut our milk price by 1.25ppl from 1 January 2009.
"First Milk is not alone in facing this market volatility. What is most important now is how we navigate through these challenges.
"Over the last six months we have shown flexibility to reshape our business in line with market conditions. We have strengthened relationships with our fresh milk processing customers, and on the cheese side we are focused on growing our brands and retaining and securing premium retailer contracts.
"Flexibility plus the capability to move quickly to take advantage of market opportunities are traits that will be required in abundance in 2009."
For further information please contact:
Group Communications Director, First Milk
direct dial: 0141 847 6789
mobile: 07767 241452