First Milk is to raise the standard price it pays producers in its liquid milk pool by 2.6p per litre to 28.65p per litre.
The UK co-op said today (20 September) it will also raise the price it pays producers in its balancing pool by 1.25p per litre to 27.35p per litre.
In addition, First Milk said that on the back of “a solid trading performance” in the six months to March 2012, it would pay out a 3% return on members’ capital account balances in October.
As increased returns from the marketplace would be staggered over October and November, First Milk said it would raise the liquid pool price in two stages, by 1p per litre from 1 October and 1.6p per litre from 1 November. The balancing price rise will also be managed in two phases, 0.5p per litre from 1 October and 0.75p per litre from 1 November.
The First Milk rise follows announcements by a number of major UK milk processors that they would be increasing prices after facing protests from their suppliers during the summer.
Earlier this month, Robert Wiseman Dairies, owned by German yoghurt giant Muller, announced it is to increase its price by 2.57p to 29p per litre from 15 October. Dairy Crest this month said it was “on track” to up the price it pays farmers for milk having postponed plans to cut prices.
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UK retailer The Co-operative Group has also announced it is to increase its price to 30p per litre from 1 October after a review of “market conditions”.