First Milk announces February price cut

The price cut comes into force on February 1.

Dairy farmers supplying First Milk will incur a 1p a litre price reduction from the start of next month.

The Glasgow-headquartered farmers’ co-operative is cutting its milk price on February 1. Its Scottish pool price will reduce to 28.09p a litre.

First Milk blamed the price drop on downward pressure in global commodity markets.

“Improvements in First Milk’s business performance meant that we could delay a milk price reduction for January. Recent market developments will affect our customer pricing mechanisms, however, and we can only pay a milk price linked to our returns,” said First Milk vice-chairman Jim Baird.

“We understand that this will be disappointing news for our members and remain completely committed to doing everything we can to reduce the impact of decreases in the market through our focus on quality and efficiency throughout our business, and through the development of our strong relationships with customers.”