The NFU has today heard First Milk announce another price cut to its supplier members from July 1 2015. Milk pools will see their standard litre price reduced by 1ppl with an exception in the Midlands Balancing pool which will see a 0.7ppl reduction.
NFU dairy board chairman Rob Harrison said: “We are in a position now whereby the majority of dairy farmers in the UK will be receiving milk prices far below the cost of production. This is simply not sustainable.
“What we need is a guarantee from our milk buyers that they are doing all they can to get the best possible price from the market. But above all, we need the industry to work with us to develop a rigid and practical set of risk management tools that can benefit our farmers and support them with fair prices during a period of market volatility.”
It is also announced that Sir Jim Paice will step down as chairman of First Milk.
NFU President Meurig Raymond said: “Jim has chaired First Milk through a very turbulent time for First Milk, its members and the entire dairy industry.
“We are pleased that First Milk is looking to the future in a number of ways including its external review of Governance and the need to bring extra commercial acumen onto its board and its management team. We recognise that it has many challenges ahead and we will work closely with First Milk towards achieving a long-term sustainable dairy market.”
