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MP welcomes "First" increase in milk prices - and urges others to follow

June 4, 2013 9:21 AM

TF ruralCumbrian MP Tim Farron has today welcomed moves by First Milk, which will see the price paid to dairy farmers for milk increase by 1.1ppl to 30ppl for a standard litre of milk.

First Milk will be introducing the increase for farmers in 2 stages starting with a 0.6ppl increase from July 1 2013 with a further 0.5ppl increase from August 1 2013.

This increase follows over a year of campaigning by the NFU and the Dairy Coalition which led to the introduction of a Voluntary Dairy Code for milk processors and supermarkets to sign up to after the crisis in milk prices which began in May 2012 and saw some farmers see cuts of up to 4ppl, threatening many dairy farm businesses.

Currently farmers lose around 5p on every pint they produce. The average cost of production is 30p per pint.

Commenting Tim said: "Every farmer should receive a fair price for their milk - one which at least covers their costs to produce milk. This increase in the price paid to farmers by First Milk is an important step in the right direction but still leaves farmers barely enough room to get by so much more must be done.

"I will continue to work with the NFU, the Dairy Coalition and other MPs to ensure that other dairy processors follow First Milk's example and increase the amount they pay for milk until farmers are finally getting a fair price for their produce."