From 1 July the milk price for First Milk’s manufacturing pool will be cut by 1.15ppl.
First Milk chairman Sir Jim Paice MP said: "Unfortunately the downward trend within dairy commodity markets has continued, albeit the rate of fall has thankfully slackened in recent weeks.
“While the peak of our domestic spring flush has passed, the global dairy market remains uncertain and we continue to watch it carefully.
“The investments we have made in areas like sports and lifestyle nutrition are now beginning to pay off and over the longer term these will transmit into milk price.”
Following up on a commitment to transparency and accessibility, which he made when coming into office last autumn, Sir Jim will be commencing a national series of farm roadshows on the 12th June.
This will see him visit every region of First Milk’s membership and for the first time these events will not only be open to First Milk members, but also to any other dairy farmer who is interested to hear more about the business.
Dairy Crest also announced a price cut of 1.25 ppl for farmers on standard liquid contracts from 1 July. The new price will be 31.2 ppl after the cut.
The company said the liquid price move reflects market conditions, with high levels of production and reduced dairy market returns.
Mike Sheldon, Dairy Crest Group Procurement Director, said; “The reduction in the price for our standard Liquid contracts reflects the lower returns from our markets following a period of record milk production. I recognise a price decrease is disappointing for our farmers but we have delivered on our commitment to strive for stable pricing by adjusting the price by less and later than our competitors.
“I’m confident that we have a compelling package for our farmers, offering flexibility and choice and a comprehensive farm support service. From July we will be offering a further volume of milk priced according to our innovative Formula contract options. Also, all farmers supplying Dairy Crest continue to benefit from their milk not being subject to capital deductions or other hidden costs.
"I am pleased to deliver further stability on our cheese price for Davidstow farmers. As our successful Cathedral City and Davidstow cheese brands continue to grow, we need more milk for our Davidstow Creamery."