First Milk Changes Price Schedules to Reduce Complexity

UK - First Milk (FM) has confirmed a number of changes to its member price schedules that will be implemented from April 2016, according to reports from AHDB Dairy.
calendar icon 29 February 2016
clock icon 1 minute read

All members will see their ‘A’ volume increase from 80 per cent to 90 per cent of historic volumes. FM will also introduce an expansion scheme that could allow farmers to increase their ‘A’ volume, based on planned expansion, provided it works for both parties.

FM will be introducing a milk price index to track FM member prices against its main competitors, and will report progress on the tracker to members on a quarterly basis.

Members will see the complete removal of the solids contracts. All farmers in the creamery milk fields will be paid in pence per litre on cheese price schedules rather than £’s per kg.

This is to reduce the number and complexity of price schedules. The proportion of money paid out for butterfat and protein, in these milk fields, will increase to approximately 87 per cent of the total, by reducing the payment for the top hygienic quality bands.

The cheese price schedules for Haverfordwest and Lake District will also see the introduction of a farmer-specific transport charge based on the distance from the factory to the farm.

The changes are designed to be cost-neutral overall, although the impact on specific farmers will depend on their individual circumstances.

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