First Milk to raise price it pays to producers

The UK's largest farmer owned milk co-operative, First Milk, announced this week that as from the beginning of April, it will increase the standard litre price it pays to producers in its liquid pool by 1.2p per litre to 26.2p per litre

From the same date it will boost the price it pays to producers in its cheese and balancing pools by 1p per litre to 25.52p per litre. These latest increases will push the First Milk prices up by 2.57p per litre since the start of 2011

First Milk chairman Bill Mustoe said the increases had been made possible through maintaining price pressure on First Milk customers.

He also commented that the price increases were recognition of the leap in farm input costs.

The price increase was welcomed by NFU Scotland, with vice-president, Allan Bowie, saying it was "a step in the right direction".

However, he pointed out that not all producers would receive the rise as those producing less than they did a year ago will see a smaller increase.