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First Milk cancel August price cuts


First Milk has withdrawn plans to reduce the milk price it pays to farmers in its liquid and balancing pools from 1 August. First Milk's chief executive Kate Allum commented,

"While we have still to complete discussions with our liquid processor customers, we have a responsibility to our farmers to show leadership in this situation and remove any uncertainty. On that basis, we have decided to immediately withdraw the planned August price cuts that were put in place as a result of moves by our liquid customers."

"This has been a turbulent time for the whole industry, but unless we immediately grasp the nettle, the progress we are seeing right now will be short-lived."

"Dairy farmers have spoken with one voice over the last few weeks, and they've made it clear that they reject the existing model where they are price takers and favour working together to gain an equal seat at the negotiating table. It is therefore critical that the whole dairy supply chain now looks to develop better structures and relationships for the short, medium and long term."


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