First Milk has announced plans to change the way it pays farmers for their milk from the start of next month.
The Glasgow-based farmers’ co-op will ditch its current regional milk pool pricing and instead introduce two payment schedules – one for liquid and one for manufacturing.
Vice-chairman Jim Baird said: “This more simplified and transparent approach on milk prices reflects the requirements of the business today and is a progressive step which unites our members across the country.”
He said the new pricing mechanism would result in a standard litre milk price for April of 26p a litre, based on 4% butterfat and 3.3% protein.
“We know that this price drop will be disappointing news for our members and continue to do all that we can to minimise the impact of reductions,” added Mr Baird.
NFU Scotland’s milk policy manager, George Jamieson, said the union supported the new pricing structure but it was disappointed with the price drop.
He said: “The drop does not reflect the new pricing model, but the downturn in the dairy market, which NFUS believes should be at the bottom of the curve.”
