October 30, 2009

Farmer-owned First Milk, one of the UK's largest milk purchases, has announced it is cutting the price paid to its members for their milk.

First Milk will cut its milk price by 0.65p per litre.

The National Farmers' Union (NFU) Scotland has recently been engaged in a campaign of meetings and correspondence with major retailers and milk processors demanding for an immediate improvement in milk prices on the back of surging prices for dairy products.

NFU Scotland president Jim McLaren questions the decision to cut milk prices, stating that the market fundamentals are all pointing to much better prices for milk and dairy products, and milk processors should quickly share improving returns with dairy farmers.

First Milk's announcement is a real blow to progress on milk prices, he added.

It is a concern that the UK's leading dairy co-op is cutting producer prices from a comparatively low level at a time when all signals point to a substantial rise, he said.