Dairy farmers supplying First Milk will receive a price increase on January 1.
The Glasgow-headquartered farmers’ co-operative will increase its A price by 2p a litre at the start of next month.
The price increase will bring the Scottish mainland pool price up to 25.24p a litre.
First Milk, which has four manufacturing sites across Scotland, England and Wales, said the price increase was a result of an improvement in both market returns and the performance of the business.
Chief executive, Mike Gallacher, said: “We are very aware of how challenging the market downturn of the last two years has been for our members. It is good to see the new First Milk now able to provide a competitive return, with much more that we can still do to continue to improve our own performance. We see a much better year ahead for our members.”
The co-op’s chairman, Clive Sharpe, said: “Our milk prices have now risen by an average of 10p per litre since June and market signals continue to point to some further improvements in early 2017. We look forward to making more progress in 2017.”
Earlier this month First Milk pledged further milk price progress following the publication of its mid-year financial results.
Accounts for the six-month period ending September 30 revealed pre-tax profits of £6.8million – up from a pre-tax loss of £2.4million for the same period last year.
Operating profits were also up to £9.2million, from £1.2million previously, while bank debt was down to £26.1million from £46.1million before.
First Milk is not the only dairy company upping its milk price in the New Year.
The main milk buyer in the north and north-east, Muller, is to increase its standard litre price by 2.5p to 26.54p a litre.
Graham’s The Family Dairy, which has processing sites at Bridge of Allan, Nairn and Glenfield in Fife, will also increase its standard price by 2p a litre to 25.5p a litre.
