Former suppliers to collapsed UK dairy co-op Dairy Farmers of Britain (DFB) who have switched to First Milk will see the price they receive for milk increase next month.
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DFB, which accounted for 10% of the UK’s milk supply when it fell into administration, collapsed in June after the co-operative’s moves to revamp the business failed to stem losses.
However, First Milk said this week that it will increase the price it pays to the ex-DFB suppliers by GBP0.01 (US$0.02) per litre to 19.65p per litre.
In a letter to producers, chairman Richard Greenhalgh said: “From September we will be putting increased volumes of milk into our Lake District creamery to keep up with consumer demand for our Lake District cheese range. In addition, we are also seeing some pick-up in demand from the spot market.
He added: “Both of these factors give us the ability to improve the price that we can pay to you.”
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By GlobalDataHowever, the move will do little to redress a 3.4p per litre price cut imposed last month, which First Milk blamed on weak spot milk prices.
Greehalgh said the company will continue to keep the milk price under review based on market returns.
