First Milk introduces market related pricing

Published 25 March 10

First Milk has announced it will introduce market related pricing from 1 April 2010.  After consultations with members and their representatives, the company has moved towards a system of directly linking market returns back to the milk price paid.  In addition, changes have been made which will improve prices for large volume producers and simplify the pricing schedules.

Prices paid will be related to gross returns from milk in the pool, less primary and secondary haulage costs with business running costs applied equally between pools. A protein bonus will apply to those supplying cheese sites.

The effect of these adjustments will be to increase the price for producers supplying liquid processing customers by 0.8ppl.  Producers in south west Scotland, Northumberland and those along the Cumbria M6 corridor will see an increase of 0.5ppl.

For those producers supplying the cheese and milk balancing pools, prices will not change, while producers in the Highlands & Islands pool will see a price decrease of 0.35ppl.