First Milk has reduced its member milk price by 1ppl from 1 May 2009.
Peter Humphreys, First Milk's chief executive, commented:
"The liquid market where we put around 60% of our volume has seen further price drops. In addition, selling prices in cheese continue to be under pressure, particularly from imports and the increased volume of branded promotions.
"The market will continue to be tough in the short term, however we are starting to see some positive signs. Firstly, global Ingredients prices have stabilised over the last few weeks. Secondly, our cheese brands are making good progress in terms of gaining listings and delivering volume growth.
"I can assure members that we are urgently reviewing our entire cost base and sales streams to establish a clear route to improve the returns we can pass back to them."
For further information, please contact Paul Flanagan, Group Communications Director, 07767 241452.