Increase in price paid to milk suppliers

Dairy farmers supplying First Milk will receive an increase to their milk price from today.

The Glasgow-headquartered farmers’ cooperative is increasing its A prices for February by between 0.85p and 0.95p a litre.

Farmers supplying the company via its Scottish mainland pool will receive a 0.85p price boost to 26.09p a litre.

CEO Mike Gallacher said: “We are pleased to be again increasing our milk prices, with cumulative increases since June now around 11p per litre.

“This is the eighth milk price increase in a row, reflecting the improvement in market returns and a leaner, more focused First Milk business.

“We anticipate updating members again later this week with positive news on the refinancing of the business,” he added.

Meanwhile, dairy farmers supplying Muller and Arla will also experience a price increase from today.

Muller, which is the main milk buyer in the north and north-east, will increase its standard non-aligned price, incorporating a separate additional retailer supplement, to 27.51p a litre.

European farmers’ cooperative Arla will increase its liquid price to 27.07p a litre, and its manufacturing price to 28.16p a litre.

The coop, which buys milk from onein-four UK dairy farmers, also yesterday announced plans to invest more than £37 million in its UK business this year.

The money, which represents an increase of 51% on last year, will be spread across Arla’s 13 production, packing and distribution sites as well as its logistics operations.

Tom as Pi et range li, Arla’ s UK managing director said: “By continually investing and improving our sites we can ensure we grow capacity, maintain high quality of our products, and ultimately return the best possible price to our farmer owners.”

First Milk, Muller and Arla are raising prices for dairy farmers.