First Milk will hold its milk price from April 1, at the current level.
Current standard litre prices stand at 26.50ppl for liquid standard litre and the manufacturing standard litre is 27.38ppl, both including member premium.
Total member returns will increase, however, as its member premium is increasing from 0.25ppl to 0.5ppl from April 1 for members who have reached their capital target.
This means the processor’s liquid standard litre price, including member premium, will increase to 26.75ppl and its manufacturing standard litre will increase to 27.63ppl.
Jim Baird, farmer director and vice-chairman said: “Not only will our members shortly be receiving their member premium payment for the 19/20 milk year, but they are also benefiting from the doubling of our member premium from April 1.
“Despite inevitable uncertainty in the market, I am delighted that we are able to reward member loyalty in this way, providing our farmers with some much-needed stability and recognition of their commitment to First Milk.”