The rise means First Milk’s 900 producers will receive 27.2p/litre for standard liquid litres with a constituent content of 4% butterfat 3.3% protein.
For ease of comparison, the rise will take the processor’s manufacturing standard litre to 4.2% butterfat, 3.4% protein.
July will be the first month that First Milk price has increased its pricer since November 2017, since which the co-op has seen four holds and three drops.
This latest rise means the majority of major UK dairy processors have increased milk prices for July, with Muller, Meadow Foods and Dairy Crest announcing higher payments in recent weeks.
Strengthening dairy commodities markets and improved business performance were given as reasons behind the 1.2p increase, according to First Milk vice-chairman and farmer director, Jim Baird.
“We have strived to deliver as much stability as we can to our members during the most recent period of volatility,” said Mr Baird.
“As always, we are focused on maximising member milk price, and will continue to pass on any further increases as soon as we can.
Production capacity increase
Mr Baird added First Milk had recently started a £6.5m investment project at its Haverfordwest creamery that will expand the facilities’ capacity by 20%.
He added: “We are well placed to utilise additional milk from our farmers, who are able to grow their businesses without restriction, encouraged by our production bonus and with the security of an evergreen contract.
“In addition, we have been proactively taking on new members and suppliers across the country, with additional milk volume coming through in the year.”
Other July milk price moves
Liquid litres (4% butterfat, 3.3% protein)
Yew Tree Dairy ⬆️ 1.5p to 28p/litre
Sainsbury’s Dairy Development Group ⬆️ 0.36p to 28.48p/litre
Pensworth ⬆️ 1.2p to 27.2p/litre
Muller ⬆️ 1.25p to 28p/litre
Meadow Foods ⬆️ 1p to 28p/litre
Manufacturing litres (4.2% butterfat, 3.4% protein)
Belton Farm ⬆️ 1p to 28.25p/litre
Dairy Crest ⬆️ 0.65p to 28.65p/litre
Glanbia ⬆️ 1.5p to 28p/litre
By: Jack Yates
Source: Farmers Weekly