First Milk, the farmer-owned co-operative that is headquartered in Glasgow, has confirmed that it will increase its A prices by up to 1.25p per litre (ppl), as well as lifting its B price by 5ppl.
At the start of each financial year, First Milk members are allocated monthly volumes that are split between A and B volumes. The A volumes account for 90 per cent of the milk supply, with B volumes accounting for the remaining 10 per cent. Any milk produced in addition to the A volume allocated to each member is paid at the B price.
Recent strong improvements in the spot price for milk - currently 31ppl - is forcing milk processors to increase the price they pay for marginal milk supplies.
In his letter to members yesterday, First Milk chairman Clive Sharpe said: "Baskets mechanisms for our cheese pools have allowed us to lift prices by 1.25ppl across August and September (+0.75ppl for August and +0.5ppl for September) and we believe it is likely that the September increases could rise further.
"Having moved our B price up 2ppl for July, we are keen to raise this further to reflect the strength of improving market returns. We are therefore increasing our B price by a further 5ppl to 20ppl from 1st August and hope this will allow members the opportunity to benefit from producing more marginal litres."
* Meanwhile, NFU Scotland is urging farmers and crofters to take 5 minutes to check the roadworthiness of their vehicles and trailers before driving on public roads.
A six-point check list should be carried out as a bare minimum to ensure the vehicle and trailer are both legal to be on the road, and includes checking your brakes, steering, lights, electrics, tyres and cleanliness.
Market round-up
Messrs Craig Wilson Ltd sold 134 store heifers at Ayr on Thursday to a top of £1200 per head and 237p per kg to average £866.94 and 208.6p (+3.1p on the fortnight), while 141 store, beef-bred bullocks peaked at £1215 and 234.7p to level at £924.22 and 210.7p (+0.2p). Sixty-one store, B&W bullocks sold to £965 and 183.7p to average £696.64 and 145.3p (+6.9p).
C&D Auction Marts Ltd sold 2516 prime lambs in Longtown on Thursday to a top of £104 per head and 234p per kg to average 185p (-6p on the week).
The largest show of the season so far saw 5217 cast sheep forward when heavy ewes sold to £147 for Texels and average £75.46 (-76p), while light ewes peaked at £87 for Lleyns and levelled at £45.07 (-£4.54). Rams sold to £185 for a Texel and averaged £81.17.
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