First Milk drops its ‘A’ milk price again

First Milk is to drop its February “A” milk prices for producers in the Midlands, East Wales and Scotland. 

Milk producers in the Midlands and East Wales balancing pools will see their milk price fall by 0.62p/litre, while those in Scotland balancing pools will have their milk price reduce by 0.19p/litre. 

The “A” milk price for producers in all other milk fields will remain unchanged. 

For producers in Scottish balancing pool, the cut follows a 0.3p/litre cut in December and a 0.18p/litre cut in January.  

See also: First Milk back into profit with half-year results

Dairy farmers in supplying milk to the Campbeltown, Arran, Lake District and Haverfordwest creamery pools and the Northern England balancing pool also saw their “A” milk price drop by 0.25p/litre in January, following a cut in December of 0.43p/litre.

The cuts take most farmers’ A milk price further below 20p/litre. 

Nigel Evans, First Milk’s newly elected vice-chairman, said: “Myself and the whole board fully recognise the difficulties which this continued market slump is creating for our members across the UK.

“Unfortunately, nobody is able to predict when global milk supplies will tighten or when markets will turn, in the meantime we remain 100% focused on running First Milk as efficiently and effectively as possible to maximise the market value that we can pass back to our members.”

Change at the top of First Milk

The milk price announcement come the same day as the farmer-owned co-operative said it had now fully transitioned to a new board structure with Clive Sharpe formally assuming his role as chairman.

The follows the resignation of former chairman Jim Paice in June last year after less than two years in the job. 

First Milk made an operating profit of £1.1m in the six months to the end of September, compared with a loss of £7.6m in the same period in 2014.

It delayed payments to farmers and cut milk prices heavily following a £25m loss in the year to March 2015. 

Chief operating officer Mike Gallacher took up his post in March last year.

Changes he has made so far include the introduction of “A” and“B” pricing for farmer-members’ milk and several top-level appointments in the group’s executive team.