Prices have dropped by between 0.10ppl and 0.35ppl
First Milk has announced its milk price to members will fall by between 0.10ppl and 0.35ppl in May.
Clive Sharpe, First Milk chairman said: “After total increases of 10ppl since last summer, it is disappointing to have to reduce our milk price.
"However, consistent with our business operating model, we will continue to pay a milk price that relates to our returns.”
Barber's has also announced it will hold its price for June.
Principal consultant at the Dairy Group, Nick Holt-Martyn, said he was not surprised to see recent milk price drops, as globally, there was ‘no market’ for milk proteins.
He said: “Skim milk powder is at intervention level. The butter market is virtually double that, but you cannot produce one without the other.
“Dairy Crest has now satisfied its core demand and has critical volume coming in.”
He said he would be watching to see liquid processors’ decisions on milk prices, as liquid markets had been supported by cream incomes.
He said: “Liquid milk tends to follow the market, so it will probably have a knock-on effect on liquid people. It will be interesting to see if they follow suit.”
He said the announcement was further forward than it needed to be, which had given producers a ‘reasonable idea’ of what income would be over summer.
He added the mood had changed from last autumn when the industry was discussing how far the price could rise.
He said: “Now, we are in the position of hoping prices do not fall any further.”