First Milk farmers will see further reduction in milk cheques for January.
Those supplying milk for cheese to Campbeltown, Arran, Lake District and Haverfordwest creamery pools as well as the Northern England balancing pool will see prices reduced by 0.25ppl while those supplying the Scottish balancing pool will see prices back by 0.18ppl.
The announcement comes following price reductions for several First Milk pools at the start of December.
First Milk interim chairman Nigel Evans said: "While 2015 was a hugely challenging year for First Milk and our members, the announcement we had concluded refinancing with our current banks demonstrates the progress we have made, not only in stabilising the finances of the business, but also in reshaping the company over the last 12 months."
He said sustained oversupply of milk, especially in the EU, was driving up stock levels and putting downward pressure on prices.
“With returns for our cheese business set by a basket mechanism, announcements from other processors of price drops for January have had a direct impact on First Milk returns," he said.
January prices are now as follows:
In an exclusive interview before Christmas First Milk chief executive Mike Gallacher told FG the future of the business needed to be secure before First Milk could increase returns to farmers.
January will also see a reduction in prices for Arla farmers. The co-operative has held milk prices for the month but a new quarter’s average exchange rate will be introduced which will see standard litre prices fall by 0.43ppl to 22.61ppl.