First Milk reduces prices from 01 December 2015:
• -0.43ppl for creamery pools & Northern England pool
• -0.30ppl for Scotland pool
• No change for Midlands pool
Interim Chairman Nigel Evans commented:
“Last week we provided updates on the improving financial performance of the business and the agreement to sell our Glenfield Dairy. However, with growing supplies across the EU, prices for cheese have continued to weaken and this impacts our projected returns from December. This directly affects our creamery milk pools and those other pools whose milk is utilised mainly for cheese.
“Obviously as a dairy farmer, I fully appreciate how serious the current market conditions are for member’s businesses. The impact of weak returns and excess milk volumes are being felt around the world. As interim chairman, I am focusing on the things we can influence, which are ensuring First Milk continues to improve both its financial and operational performance and reshaping our governance structure to deliver a more commercially effective board.”
NFU Scotland Milk Committee Chairman, Graeme Kilpatrick said:
“Today’s announcement from the farmer owned business First Milk that they are cutting their milk price across all pools is severely disappointing. It condemns hundreds of Scotland’s dairy farmers to facing a high-cost winter while remaining in a loss-making situation and that cannot continue.
“Last week’s announcement from First Milk of a return to operating profits is a good indication that the company’s turnaround plan is working. However, while the company may have turned the corner, its producers need to be given a clear steer from their co-operative as to when they can expect to receive a viable milk price.
“We hope to meet with First Milk in the next few weeks to discuss the ongoing crisis at farm level and establish where its Scottish membership fit in to the turnaround plans.
“Given that these latest price cuts will affect a significant portion of Scotland’s dairy farmers, it remains hugely important that those within the supply chain are aware of the on-going difficulties in the sector. Government, retailers and processors must go further to back dairy farms and rural communities at this critical time and we will continue to work with them in a bid to return all Scottish milk producers back to profitability.”
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