First Milk increases price for cheese and balancing producers

First Milk will increase their standard litre milk price by 0.25ppl from 1 May 2010 for those in its cheese and balancing and Highlands & Islands milk pools.

Chairman Bill Mustoe commented, "Despite operating in a marketplace where prices have been broadly static in 2010, we have been successful in generating additional returns internally through costs savings, improved efficiency and a better mix of products in the market. Delivering these returns has allowed us to add £8m to our milk fund in 2010 already through moves in February and April.

"This additional price rise for producers in the cheese and balancing and Highlands & Islands pools is as a result of new commercial deals and further cost management within our cheese business.

"The 0.25ppl increase shows the benefit of our moves towards market related pricing, which delivers more transparent prices for defined milk pools based on net market returns. We will move the milk price up again for each of our milk pools as soon as we have further improvements in net returns."

19 April 2010

Notes for editors

Cumulative standard litre price increases received so far in 2010 by First Milk producers (includes 0.25ppl increase above):

Liquid pool (+1.05ppl)
Producers supplying liquid processing customers mainly by primary haulage.

Regional pool (+0.75ppl)
Producers in South West Scotland, Northumberland and along the Cumbria M6 corridor.

Cheese & Balancing pool (+0.50ppl)
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 (+0.15pl)
Producers supplying First Milk's Scottish creameries.