First Milk has confirmed that under its new A & B pricing structure for April, that the A price will be cut to 20.87ppl for the manufacturing pool and 20.5ppl for the balancing pool.
The range for the B price is 16ppl to 18ppl and as previously communicated this will be fixed after the month-end.
Chairman Sir Jim Paice MP commented: “There continues to be marked volatility in global dairy prices. Nevertheless, the recent movement of market indicators means that we are cautiously optimistic that the trend for future dairy prices is, at long last, a more positive one.
“However, there remain a number of uncertainties. For example, although the latest few GDT figures have been encouraging, as yet, they have not fed through to milk prices and many buyers are awaiting the outcome of the forthcoming spring flush.
“As a Board we will continue to monitor market indicators closely and build these into our decision-making on milk price.”
First Milk are organising local drop-in days across the country, which are being held by their Farm Enterprise Team, to ensure that all members have the opportunity to discuss and understand the new pricing arrangements.
But Managing Director of Muller Wiseman Dairies Carl Ravenhall said: “We are encouraged by recent signs of improvement in global commodity markets and very much hope that this establishes a trend. On the supply side, production of farm-gate milk will peak over the next period and we hope that this will be at a level which supports, rather than undermines stability and progress.”
