Dairy farmers supplying First Milk will receive an increase to their milk price from today.
The Glasgow-headquartered farmers’ co-operative is increasing its A prices for February by between 0.85p and 0.95p a litre.
Farmers supplying the company via its Scottish mainland pool will receive a 0.85p price boost to 26.09p a litre.
The dairy’s chief executive officer, Mike Gallacher, said: “We are pleased to be again increasing our milk prices, with cumulative increases since June now around 11p per litre. This is the eighth milk price increase in a row, reflecting both the improvement in market returns and a leaner, more focused First Milk business.
“We anticipate updating members again later this week with positive news on the refinancing of the business.”
Meanwhile, dairy farmers supplying Muller and Arla will also experience a price increase from today.
Muller, the main milk buyer in the north and north-east, will increase its standard non-aligned price, incorporating a separate additional retailer supplement, to 27.51p a litre.
The company has also confirmed that its milk price will remain unchanged for March.
A company spokesman said: “Our milk price position for March has been discussed with the farmer board and reflects the current environment where dairy commodity markets are easing back. In addition we are seeing increasing direct supply volumes across all our milk field areas. As we approach the period leading into the spring ‘peak’ it is important that we closely monitor the balance of supply and demand.”
European farmers’ co-operative Arla will increase its liquid price to 27.07p and its manufacturing price to 28.16p a litre.
The co-op, which buys milk from one in four UK dairy farms, also yesterday announced plans to invest more than £37million in its UK business this year. The money, a rise of 51% on last year, will be spread across Arla’s 13 production, packing and distribution sites and logistics operations.
Tomas Pietrangeli, Arla’s UK managing director, said: “By investing and improving our sites, we can ensure we grow capacity, maintain high quality of our products and ultimately return the best possible price to our farmer owners.”
