First Milk’s move to increase prices it pays to farmers welcomed

Dairy farmers supplying First Milk will have their milk price increased next month.

The Glasgow-headquartered farmers’ co-operative is to increase its A and B prices on November 1.

Farmers supplying the dairy are paid based on an AB formula, which pays farmers one price – the A price – for a certain proportion of their milk and another price – the B price – for any extra milk.

First Milk said the B price will increase by 5p to 25p a litre, while a minimum 1p a litre increase will be applied to the A price on all non-aligned pools.

The co-op’s chairman, Clive Sharpe, said: “As occurred with our 5p per litre B price increase for August, this latest uplift to 25p a litre gives members a clear indication that we expect our A prices to follow.

“Our next announcement will be later this month when we finalise November A prices.

“First Milk is well positioned to capitalise on the current strength of the market and we are confident we will continue to improve members’ cash-flow.”

NFU Scotland’s milk committee chairman, Graeme Kilpatrick, welcomed the price increases and said they were a strong indication that market returns for dairy products were improving.

“However, most farmers are selling the clear majority of their milk at an A price, which First Milk is increasing by a minimum of one pence per litre from November,” he added.

“Major milk processors based in Scotland are still failing to deliver a sustainable price back to farmers for their milk.”