Scottish dairy processor First Milk has announced it will raise its standard litre milk price will increase by 0.25p/L from April 1, 2019.
It means the firm will pay out 27.75p/L for the liquid standard litre or 28.68p/L for the manufacturing standard litre.
This increase reflects First Milk’s commitment to pay a new, previously announced, member premium of 0.25p/L from April 1 to the majority of members who have reached their capital target.
Commenting on the announcement, Jim Baird, vice chairman and farmer director, said: “The markets remain uncertain but, despite this, we have been able to deliver these additional returns by delivering on our growth strategy.
“This additional member premium payment rewards our members for their loyalty, and we remain focused on continuing to develop our business to deliver long term prosperity for our members.”
The payment will be calculated and accrued monthly and paid as a lump sum in April 2020.
NFU Scotland Milk Committee chairman and First Milk member John Smith, who farms in Kintyre said: “First Milk producers will welcome that the April milk price has stabilised at a time of rising costs and uncertainty and that the company has committed to paying a bonus payment on capital invested by producer members, accrued over the coming year, and payable in April 2020.
Members were called on to prop up First Milk financially only a few years ago but this announcement suggests that the company is now on a better track and has a more positive outlook going forward.
“A number of First Milk members meetings are taking place shortly and I would encourage First Milk suppliers to attend to hear first hand from the company about its plans for the future.”
