British co-op First Milk has announced that it would increase its price by 1p/l (1.2c/l) for September milk, the third monthly price increase in a row. In addition, co-op members are getting a 0.25p/l (0.25c/l) bonus “due to stronger than budgeted business performance”. This is a result of a streamlining and cost-cutting plan under implementation by the co-op.

“As well as increased cheese returns, we are now starting to see price movement from some of the major liquid processors, which directly benefit our balancing pools,” First Milk chair Clive Sharpe said in a statement. “There will be further price lifts for October and we will confirm the level of this during September once we get a full view on market changes.”

First Milk operates five different regional prices split between A and B volumes.

FrieslandCampina

The Dutch-based giant FrieslandCampina has also increased its September price, by 1.29c/l to 27c/l excluding VAT at 3.47% protein and 4.41%fat.

“The positive development of the milk prices is caused by increasing quotations for almost all dairy base products, with butter and foil cheese as outliers,” the co-op said in a statement, adding that “the milk supply in the EU is gradually decreasing with a more or less stable demand”. This trend is likely to be confirmed by the introduction of the EU’s milk production reduction scheme from October.

As previously reported, French farmers supplying the national leader Lactalis have obtained a 2.5c/l price rise after a series of protests.

Meanwhile, the Danish-based co-op Arla has announced a 1.25c/l increase for September.

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