British farmer-owned First Milk has announced its milk price will decrease by 0.75p per litre from the New Year.
The dairy co-operative announced that its milk price for January 2019 will decrease by 0.75ppl to 27.75ppl for the liquid standard litre (4% butterfat, 3.3% protein).
This equates to 28.69ppl on a manufacturing standard litre (4.2% butterfat and 3.4% protein) price.
First Milk blames falling international dairy commodity markets which have impacted returns for the milk price cut.
Jim Baird, Vice Chairman and farmer director, said: “There were some positive signs in a recent GDT auction, but as we look forward into 2019 the medium-term direction of the market remains unclear.
“We have been able to deliver eight months of stable or increasing member milk prices and so recognise that this decrease, particularly at this time of year, will be disappointing to our members.”
He added: “Our underlying business performance continues to be on plan, and we will continue to do all that we can to minimise any negative impact from the market and provide our members with as much stability as we can, whilst delivering on our growth strategy to delivery dairy prosperity for our members.”
Dairy farmers supplying Müller will also see their milk price decline for January 2019, going down by 1p per litre to 27.5ppl.
