First Milk increases liquid price by 0.8ppl

First Milk will introduce market related pricing from April that will return a price to members that is more in line with the net return received for their milk. Additional changes deliver an improved price for large volume producers and the simplification of the pricing schedules.

In the context of a one million-litre producer in the First Milk liquid pool, the changes equate to an £8000 annual increase.

The combined adjustments will result in the following changes to standard litre prices:

Liquid pool (+0.8ppl)

Producers supplying liquid processing customers mainly by primary haulage

Regional pool (+0.5ppl)
Producers in South West Scotland, Northumberland and along the Cumbria M6 corridor. The increase reflects returns from milk in these areas

Cheese & Balancing pool (no change)

Those supplying the Lake District and Haverfordwest creameries, in balancing milkfields or supplying milk to the liquid market where significant secondary haulage is used

Highlands & Islands pool (-0.35pl)

Producers supplying First Milk's Scottish creameries.

First Milk's chairman Bill Mustoe commented: "Members and their representatives have been consulted on these proposals since last summer. The vast majority of members are supportive of our efforts to directly link market returns back to their milk price. This is the first step down that road. We are writing to all members next week with details of their new milk price schedules.

"We continue to make progress in the business on reducing our costs and increasing our income, and this is reflected in the price increases we are announcing today as well as the one we announced in February. We will make further steps as soon as we can."

Ends

Contact for further information:

Paul Flanagan 07767 241452
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