First Milk to raise prices amid ‘encouraging’ signs in markets

First Milk, the producer owned co-operative has announced a price increase of 1.2 pence per litre from July 1 on a liquid standard litre basis (4 per cent butterfat, 3.3 per cent protein).

Commenting on yesterday’s announcement, Jim Baird, vice chairman and farmer director, said the group had striven to deliver as much stability to its members during the most recent period of volatility.

“It is encouraging to see that commodity dairy markets have been improving in recent weeks, and our price increase for July is a result of better returns coming through from the market, as well as improved business performance. As always, we are focused on maximising member milk price, and will continue to pass on any further increases as soon as we can.”

Baird said First Milk was focused on developing customer relationships and growing the business: “To meet growing demand and further improve our operational performance, we have recently started a £6.5m investment project at our creamery at Haverfordwest that will expand capacity by 20. As such, we are well placed to utilise additional milk from our farmers, who are able to grow their businesses without restriction, encouragedbyourproduction bonus and with the security of an evergreen contract.”

He said that the co-operative had been proactive at taking on new members and suppliers across the country, with additional milk volume now coming throughout the year.