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First Milk co-op has decided to raise its October price and pass on the increase to farmers immediately. British farmers will now receive between 1p/l and 1.67p/l for September, which includes a bonus of 0.25p/l business supplement payment, to reflect an increase in business performance. This is the second time in a week that the processor has increased its farmgate price.
In a letter to First Milk suppliers, chair Clive Sharpe said the co-op will further update suppliers in mid-October and confirm the price increase later this month. He hopes the price rises will continue to grow and the co-op will continue to deliver their business performance bonus.
Muller increases price also
Meanwhile, Muller has increased its price by 1p/l from 1 October also. In a letter delivered to its suppliers this week, the co-op said it has raised its prices to reflect the improving global commodity markets and tightening milk supplies.
Muller is in the process of aligning its price between its two liquid contracts, Muller Milk Group and Direct Milk. The aligning of prices is being carried out over time to ensure all suppliers will receive an equal price for the milk.
Muller’s agriculture director Lyndsay Chapman says the co-op is “hopeful that dairy commodities markets have turned a corner” and are on the road to recovery.
A growing trend
In recent weeks, a number of milk processors across the UK and Europe have raised their farmgate prices.
Dutch dairy company FrieslandCampina increased its September price this week by 1.29c/l, along with Lactalis in France and Arla in Denmark.
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