Dairy Co-op First Milk has upped prices paid to its farmers in line with other processors, who also announced price increases in recent weeks.

First Milk announced on Thursday (29 November) that, "Building on previously announced price lifts this autumn" it will be increasing the price paid to producers in its milk, cheese and balancing pools.

Producers in First Milk's liquid pool will receive a 0.5ppl increase from 1 December which comes on top of a 1ppl increase in October and a 1.6ppl lift in November. Producers in the company's cheese pool will receive a 0.5ppl increase from 1 January, which comes in addition to a 1ppl increase in November and a 0.75ppl lift in December.

The balancing pool price will increase by 0.5ppl from 1 January, rising in two stages between December and January.  

First Milk chair Bill Mustoe commented on Thursday, "These regular moves demonstrate our determination to support producers through these challenging times by moving milk prices as far and as fast as we can.

"The liquid market has been bouncing around over the last six months. As recently as July, some companies were announcing prices of below 25ppl, but there has clearly been increases since then, supported by a mix of tight volumes and stronger cream returns. With cheese stocks now tightening, we fully expect market prices for cheese to strengthen in 2013.

"We will continue to press for improved returns, as well as positioning ourselves to utilise our milk across all the markets in which we operate, to generate the best possible returns for members."

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