Prices are 'shockingly low' say NFU
Dairy company First Milk has confirmed details of its new pricing structure for April, revealing that it will pay as little as 16ppl for some of its supply.
Under its new A & B pricing structure, the A price will be set at 20.87ppl for the manufacturing pool and 20.5ppl for the balancing pool. The B price range will be 16ppl to 18ppl which will be fixed after the month-end. The B price will be paid on a least 20 per cent of a member's total volume.
Dismayed at the news, NFU's dairy board chairman Rob Harrison said that some First Milk members will be "rightly shocked" at the forecast milk price set for April under their new A and B pricing model.
"The B price forecast of 16-18ppl is extremely cautious," he said. "Sitting at around the EU powder intervention price this is not manageable for farmers to deal with. If I was a First Milk member I'd be asking them exactly how the 'B' price will be substantiated at the end of the month."
First Milk chairman Jim Paice MP commented: "There remain a number of uncertainties. For example, although the latest few GDT figures have been encouraging, as yet, they have not fed through to milk prices and many buyers are awaiting the outcome of the forthcoming spring flush.
"As a Board we will continue to monitor market indicators closely and build these into our decision-making on milk price."
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