Milk Link has confirmed the reduction in its Member milk price for June of 1.5ppl. Milk Link’s 2011/12 Processing Interest Payment to Members will be £5.95m.
The June price will be held for July and August to give Members some stability during a period of considerable volatility, the company said.
Milk Link stated: It is with regret that the Milk Link Board has announced a reduction in its Member milk price of 1.5ppl from 1st of June. The decision reflects the significantly weaker returns being generated from the dairy ingredients and fresh liquid milk markets.
Neil Kennedy, Milk Link chief executive, said: "Although our price cut is less than most other major milk buyers, we recognise that the resulting drop in farm income will increase further the financial pressure on our Members' dairy enterprises. As such, to give Members some stability during this very volatile period, the board has agreed that the June price will be held for both July and August.
"In the meantime, we will of course remain totally focused on identifying opportunities to generate greater returns from the market and further reduce costs within our business and on passing the benefits of this back to our Members as soon as possible."
Kennedy added: "The payment rewards the investment and commitment of our Members in building a major, added value dairy products business and demonstrates the solid performance of the business over the last 12 months despite the very difficult market conditions all in the dairy industry have faced.
"Although the increase in the Processing Interest Payment is welcome I would like to reiterate that our main focus is on returning a sustainable milk price to our Members. As such, I and the rest of the Milk Link board regard this as our absolute priority and we are determined to shelter our Members from the impact of what are very challenging economic and trading conditions."
Source: Milk Link
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