UK farmer-owned dairy group First Milk will introduce market-related pricing for its milk payments from next month.
From 1 April, First Milk’s members will receive payments for their supplies of raw milk that are in line with the net return received for their milk, the group said.
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The company insisted that the move would deliver an “improved price” for “large volume” producers and result in the simplification of pricing schedule.
“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,” First Milk’s chairman Bill Mustoe said.
“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.”
The company said that suppliers for its liquid pool would receive 0.8 pence per litre more and suppliers for its regional pool would receive 0.5 ppl more.
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By GlobalDataHowever, suppliers of the group’s cheese business would see their payments remain unchanged while suppliers of the highlands and islands pool would receive 0.35ppl less.
