First Milk announces May price fall

UK dairy processor First Milk has announced a cut to its A-litre price of between 0.1p/litre and 0.35p/litre for May.

The fall means the co-op’s 1,000 or so farmer owners will receive between 25.84p/litre and 27.53p/litre for A volumes of milk.

The move follows the likes of Arla, Dairy Crest and Meadow Foods, which have all cut milk prices in the past month.

See also: Dairy Crest announces double milk price cut

The cut, which is as big as 1.3% in some pools, is the co-op’s first in 10 months, following two months of price holds and the preceding eight months of increases, which saw prices rise by 68.8% across the period.

“After total increases of 10p/litre since last summer, it is disappointing to have to reduce our milk price,” said First Milk chairman Clive Sharpe.

“However, consistent with our business operating model, we will continue to pay a milk price that relates to our returns.”

The Tesco cheese group top-up payment for the Haverfordwest pool has been estimated at 0.65p/litre, a fall of 35% on March’s figure.