More money for milk

NFU: ‘Farms denied sustainable price’

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

The Glasgow-headquartered farmers’ co-operative is to increase both its Aand 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 1p per litre from November. Major milk processors based in Scotland are still failing to deliver a sustainable price back to farmers for their milk,” added Mr Kilpatrick.

He called on milk buyers to ensure their pricing reflected a drop in milk production – AHDB Dairy figures show milk production in Great Britain is now 8.2% lower than the same time last year.

Mr Kilpatrick added: “Milk buyers are failing to deliver a clear incentive to farmers to produce milk while being able to pay their winter bills. This current situation is bad for farmers, and it is bad for the shoppers who want to be able to continue to buy Scottish dairy products.”