First Milk and Arla announce milk price cuts
First Milk and Arla have both announced farmgate price cuts for the coming months.
Farmers supplying Arla on direct supply contracts will see a 0.9 pence per litre drop in milk prices to 19.25ppl for January, while First Milk has announced several cuts for December.
01 Dec 2015
BY Joel Durkin
Those supplying First Milk’s creamery pools and Northern England pool will see 0.43ppl slashed from milk cheques, while 0.3ppl will be cut from its Scottish pool.
There will be no change for First Milk’s midlands pool.
First Milk’s December prices are as follows:
- Campbeltown Creamery – 17.86ppl
- Haverfordwest Creamery – about 20.6ppl (subject to retail payments)
- Lake District Creamery – 18.36ppl
- Mainland Scotland – 18.3ppl
- Midlands balancing pool – 17.9ppl
- Northern England balancing pool – 18.37ppl
First Milk interim chairman Nigel Evans said: “Last week we provided updates on the improving financial performance of the business and the agreement to sell our Glenfield Dairy.
“However, with growing supplies across the EU, prices for cheese have continued to weaken and this impacts our projected returns from December.
This directly affects our creamery milk pools and those other pools whose milk is utilised mainly for cheese.”
Mr Evans said as a dairy farmer he understood the seriousness of market conditions for members’ businesses.
“The impact of weak returns and excess milk volumes are being felt around the world,” he added.
“As interim chairman, I am focusing on the things we can influence, which are ensuring First Milk continues to improve both its financial and operational performance and reshaping our governance structure to deliver a more commercially effective board.”
Arla’s non-owner price announcement takes effect from January 1.
Last week Arla announced on-account prices would be held for December at 23.04ppl.
The announcements come following the third consecutive fall in the Global Dairy Trade last month. The next Global Dairy Trade auction is set to be held later today (December 1.)
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