FIRST Milk, the farmer-owned cooperative, has confirmed that it will increase its July "A" prices by 0.5p per litre (ppl), as a result of an accelerated business performance supplement, as well as lifting "B" prices from July by 2ppl.
In his letter to members, chairman Clive Sharpe said: "At member meetings in April and May, we committed to close the gap between our milk prices and the other dairy businesses by 2ppl, in the form of a business performance supplement.
"The first 0.25ppl of this supplement was delivered in June. Based on a stronger than forecast business performance over the last two months, we will be paying an additional 0.5ppl business performance supplement from July. As we covered at member meetings, these improvements are not market related, but are from work done at First Milk - simplifying the business , removing loss-making divisions, improving our commercial and quality performance, and cutting our costs.
The First Milk Board has also agreed, given the better market position, that the company will increase their B price by 2ppl form July."
The result of these decisions is that the combined A&B price for the average First Milk member will increase by 0.65ppl for July.
Mr Sharpe added: "Whilst I am sure these price increases will be welcome, we also recognise that the market and milk prices still have a long way to go before they get to sustainable levels. In the last few weeks, we have started to see a firming of the market, and given the majority of our income is linked to basket price mechanisms, that market positivity bodes well for the future. Our next announcement will be in late July or August for milk prices."
Market round-up
Messrs Craig Wilson Ltd sold 74 store heifers at Ayr on Thursday to a top of £1230 per head and 249.2p per kg to average £904.93 and 210.5p (-7.8p on the fortnight), while 90 store, beef-bred bullocks peaked at £1240 and 250p to level at £950.16 and 218.6p (-11.9p). Forty-two store, B&W bullocks sold to £850 and 164.4p to average £630 and 144.7p (+4.3p).
C&D Auction Marts Ltd sold 2404 prime lambs in Longtown on Thursday to a top of £113 per head and 229p per kg to average 210p (+7.3p on the week), while 585 hoggs peaked at £84 and 168p to level at 139p (+3p).
A much larger show of 4382 cast sheep saw heavy ewes sell to£158 for Texels and average £81.03 (+£1.46), while light ewes peaked at £91 for Lleyns and levelled at £46.59 (-£3.31). Rams sold to £158 for a Texel and averaged £73.63.
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