First Milk drop June A milk price

Farmer-owned co-op First Milk has dropped its A litre price by between 0.28p/litre and 0.35p/litre for next month.

The co-op’s about 1,000 producers will now receive 25.49p-27.25p/litre dependent on milk pool.

The fall comes despite the highest ever AHDB Dairy UK wholesale average butter price at £4,300/t and second biggest for cream at £1,960/t for May.

See also: Farming unions condemn milk price decreases

The processor will increase its B price for next month by 1p/litre to between 24-25p/litre.

The First Milk price has now fallen consecutively since March by an average of 0.67p/litre across the four different milk pools.

“You will be aware that there have been some price reductions in the market over the last few weeks, which have impacted the pricing mechanisms that we have in place with our customers,” said First Milk chairman Clive Sharpe.

Positive signals

“Looking ahead, there has been some upward movement particularly in short-term markets, which is a welcome positive signal.”

He added: “As a result, the B price range for June is increased by 1p/litre to 24p/litre-25p/litre and we anticipate that B prices for July will be a minimum of 25p/litre.”