First Milk will raise the milk price it pays to its members by a further 0.15ppl from 1 May 2007, as a result of increased returns from the whey and powder markets. This increase equates to an additional £1000 per year for an average First Milk member.
This measure taken together with the price increase and capital contribution change announced at the beginning of May will have a total positive impact of 0.75ppl on members' milk cheques (0.45ppl price increase, and suspension of 0.3ppl of the capital contribution payment for a period of six months from 1 April to 30 September 2007).
Peter Humphreys, chief executive of First Milk commented:
"The market signals are as positive as we have seen for some time, and First Milk is committed to extracting fair value from all the sectors in which we operate. We will keep our milk price under constant review and look to pass back further increases to members as quickly as possible."