First Milk drops prices again

By Jenny Eagle contact

- Last updated on GMT

First Milk
First Milk

Related tags: Liquid milk, Farmgate milk price, Price

First Milk has made further price cuts based on what it claims are falling commodity prices and continued decline in UK market returns.

From September the company will drop the price it pays for manufacturing milk by 0.5 pence per litre to 29.1ppl, and the price it pays for liquid milk by 0.65ppl to 28.1ppl.

It already made cuts of 1.75ppl in manufacturing milk and 1.25ppl in liquid milk this month.

Unfortunately at this stage there is no sign of a turnaround​,” said Sir Jim Paice, chairman, First Milk.

The announcement is the latest in a string of price reductions across the industry, with Arla Foods Amba dropping its global farmgate milk price for co-op members by €1.25 cents a kilogram.

It equates to a 0.94p reduction in Arla’s UK standard litre price, taking it to 31.58p.

Dairy Crest said it was reducing its farmgate price for standard liquid and Davidstow cheese contracts by 1.1ppl from September.

The price for Dairy Crest liquid milk will be reduced from 31.2ppl to 30.1ppl, while the price for the 400 farmers on Davidstow contracts will drop from 33.2ppl to 32.1ppl.

Müller also dropped its standard milk price by 1.2ppl from August 3 to 30.8ppl.

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