NFU responds to First Milk price increases

First Milk is to raise the price for each of its three main milk pools. The cheese pool price increases by 1.25ppl, balancing pool by 1ppl and the liquid pool price moves up by 0.25ppl.

Commenting on todays announcement, NFU dairy board chairman Mansel Raymond said: This represents good news for First Milks members and reflects the continued strength of commodities. I dont want to take anything away from what is a positive move, but I cant ignore the fact that market indicators for cheese, butter and powder are still achieving 28 – 30ppl.

Yet, even with todays price increase, the gap between the market price and the farrmgate price remains unsustainably wide. With costs also escalating on farm, First Milks members will be hoping that this is just the start of things to come.

It has been a frustrating few months and I am still extremely concerned at the continued lack of movement in the liquid market. Processors have been talking of a time lag, but this is a complete blockage and is further evidence that there are factors at play here which are preventing markets from operating properly. If ever the Government wanted more evidence of market failure in the dairy industry to back our calls for regulation on contracts, then this has to be it.

Following First Milks announcement, the standard litre price for each milk pool will be: cheese: 24.52ppl; balancing: 24.27ppl; liquid: 23.88ppl

The NFU and WI  Mission Milk event in November 2010 called for a strong, stable and profitable supply chain for British dairy farmers.