First Milk delivers 2.5ppl price increase – with more to come

First Milk will increase the core milk price it pays to its members by 2.5ppl from 1 October 2007.

As a result of this increase, First Milk's standard litre price increases to 23.1ppl. The co-op's marginal price* for October increases to 32.3ppl.

Peter Humphreys, chief executive of First Milk, commented:

"It is crucial to the dairy farming sector in the UK that a sustainable price be paid to ensure that the country has adequate supplies of milk.

"I am pleased to announce this further increase to our members with effect from 1st October 2007 which will go some way towards offsetting current spiralling on-farm costs.

"Furthermore, given the mix of markets in which we are operating, we would anticipate being able to lift our price by a further 2ppl from 1st November, which will take our core price over 25ppl.

Notes to editors

*Marginal milk is all milk produced in excess of 80% of last year's average daily production.

First Milk is the largest dairy farmer co-operative in the UK. Its members' farms stretch from Central Scotland to the South of England, and from West Wales to East Anglia.

The business has three divisions: Milk Operations; Cheese; and Ingredients.

Milk Operations handles approximately 1.8 billion litres of milk per annum from around 2600 producers. This milk is supplied to First Milk's cheese business and to many of the leading names in the industry.

The First Milk Cheese Company is the largest UK-based cheese supplier.

First Milk's Ingredients business supplies a range of customers with milk powder and whey products for functional foods, protein drinks, pro-biotics, pre-biotics, pharmaceutical, bakery and confectionary products.

For further information, please contact:

Jill Coyle on 07825 625205.