Small Relief for Ex-DFoB Farmers

UK - First Milk has announced it will increase its milk price for farmers who switched to them following the Dairy Farmers of Britain collapse by 1ppl from next month.
calendar icon 24 August 2009
clock icon 1 minute read
National Farmers Union

According to the National Farmers Union, the news means that around 400 producers on supply contracts will see their standard-litre milk price increase to 19.65p - making some inroads on the 3.4ppl cut they suffered last month.

Then First Milk blamed market conditions since the June 3 DFoB collapse - but in a letter to suppliers, chairman Richard Greenhalgh said today: 'From September we will be putting increased volumes of milk into our Lake District creamery to keep up with consumer demand for our Lake District cheese range.

"In addition, we are also seeing some pick-up in demand from the spot market. Both of these factors give us the ability to improve the price that we can pay to you. We will continue to keep your milk price under review based on market returns."

The First Milk member milk price is unchanged at 22.06p/litre.

The 400 farmers affected by today's news switched co-op when Dairy Farmers of Britain called in the receivers on June 3. The collapse of DFoB will be the subject of an inquiry by the Efra Select Committee (more here).

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