Unfortunately due to declining returns from the liquid, whey and powder markets, First Milk have had to reduce its milk prices from 1 June.
Its liquid pool price will be reduced by 1.85ppl, the balancing pool price by 1.4ppl, and the cheese pool price by 1.25ppl.
First Milk's chairman Bill Mustoe commented, "I fully recognise the impact that this price reduction will have on our members' farm margins, particularly given the current farm cost trends. We will continue to focus on mitigating the market factors as much as possible.
"This is the first time on my watch that we have had to reduce our milk price and it is done with great regret. Over the last two and a half years we've made big steps towards transforming our business: delivering consistent profit delivery; improved milk prices; and dividend payments to members. While we cannot buck the market, we are transforming First Milk into a true added value business.
"The global demand for dairy, which has been hit by some short term over-supply, will recover and returns will be strong in the long-term. At First Milk, we continue to build on our partnerships and acquisitions to create greater, more stable returns for our farmers."
• The new prices will see First Milk's liquid price at 26.05ppl, balancing pool price at 26.1ppl and cheese pool price at 26.25ppl