Due to declining returns from customers in the liquid market, First Milk has announced that it has no option but to reduce its liquid and balancing milk prices from 1 August.
Its liquid pool price will reduce by 1.7ppl and its balancing pool price will reduce by 0.9ppl. Despite growing market pressure there is no change to First Milk's cheese pool price.
First Milk's chairman Bill Mustoe commented, "It is hugely frustrating to see further reductions from the liquid sector, which give us no option but to move our milk prices to reflect the impact these have on our co-op. I am under no illusion as to the effect these price reductions will have on our members' businesses and their confidence in the dairy industry as a whole.
"The strategy for First Milk remains unchanged - we believe the route to a long term sustainable future for farmers is through accessing a broader range of products and markets. The price cuts we have seen over the last few days make us more certain than ever of our chosen path. We will continue to move at pace and drive First Milk to another level of breadth and diversification in order to deliver greater returns to our farmers.
"Finally, I firmly believe that the current market situation will result in more farmers choosing to be part of a business that welcomes their input and allows them to shape their own destiny, rather than sitting back and allowing others to dictate it."