First Milk cuts manufacturing and liquid prices
FARMERS supplying First Milk’s manufacturing and liquid pools will see a further price cut from November 1.
Those supplying the manufacturing pool will see their returns slashed by 0.3 pence per litre to 25.8ppl and those on the liquid pool will see prices cut 1ppl to 24.1ppl.
The price cuts round off a week which has seen Arla, Muller and Dairy Crest all slash prices, and First Milk’s cuts follow the announcement of a huge 3ppl price cut to both the liquid and manufacturing pools announced at the start of September.
The dairy co-operative pointed to the results of the last three Global Dairy Trade (GDT) auctions, combined with continually rising production.
Chairman Sir Jim Paice said: “Since the start of September there have been three Global Dairy Trade auctions. Two of these auctions, including the one yesterday, have shown downward trends.”
“Additionally, our milk production shows no sign of slowing down, and we are up 10 per cent over the last few weeks alone.
“With our main sites operating close to maximum capacity, the vast majority of this additional volume is ultimately going into Westbury where net returns are below 20ppl.”
He added as well as mitigating the impact of market conditions, the company needed to keep prices in line with projected market returns.
The continued downturn in dairy markets in recent months have led to increased disatisfaction within the industry, with Farmers For Action leader David Handley this week promising price protests in the coming days.
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