In his letter to members today, chairman Clive Sharpe said:
"Baskets mechanisms for our cheese pools have allowed us to lift prices by 1.25ppl across August & September (0.75ppl for August + 0.5ppl for September) and we believe it is likely that the September increase could rise further.
"Having moved our B price up 2ppl for July, we were keen to raise this further to reflect the strength of improving market returns. We are therefore increasing our B price by a further 5ppl to 20ppl from 1st August and hope that this will allow members the opportunity to benefit from producing more marginal litres."
First Milk chief executive Mike Gallacher added,
"The progress made over the last year at First Milk allows us to continue to move our prices as the market improves. The steep progress on the B price indicates the positive direction of travel we see in the market. Clearly our members need to see further improvement in prices and we will be passing improvements on as rapidly as possible."
"In addition to market moves, we have committed to pass back money from progress made internally in First Milk; from cutting costs; improving our cheese quality and exiting our loss making subsidiaries. As a direct result, we have returned 0.75ppl as a business performance supplement over the last two months and this figure will continue to grow over the year ahead."
Notes to editors
Table of price rises:
N.B. Tesco Cheese Supplement included above for HFW (0.81ppl July, 0.88ppl August, 0.91ppl September)