Continued weak market reduces March milk price

First Milk has announced a reduction in March milk prices, blaming weak market conditions and oversupply of milk.

Paul Flanagan, First Milk's external relations & membership director commented: “From April, the improvement in our business performance has enabled us to increase the proportion of our members’ milk which is paid at the higher A prices, from 80% to 90%.

However, for March the continued weak market conditions and plentiful supply of milk has impacted on the pricing mechanism we have in place for our cheese business. Therefore we need to cut prices for those milk pools which are linked to cheese manufacture.”

The March price changes are as follows:

• -0.60ppl for four creamery milk pools plus the Northern England balancing pool

• -0.42ppl for the Scottish balancing pool

• No change for Midlands balancing pool