YET another milk price cut has been announced by First Milk.

From December 1 the co-operative will reduce the price paid to its liquid pool by 1.4ppl to 22.7ppl and to its manufacturing pool by 1.8pp to 24ppl. This leaves it at least 3ppl lower than other major processors.

These cuts are in contrast to Muller Wiseman and Dairy Crest, which both held their December milk price and Arla, which stayed at the same price for November.

First Milk chairman and ex-farming minister Jim Paice said: “The major reason for this drop is that liquid and cheese returns have fallen over the last month.

With cheese specifically, this impacts not only on what we are selling now, but on the price that we can sell our cheese stocks in the future.

“Additionally, we have been processing the majority of surplus milk supplied this year into skimmed milk powder. Returns from this market have declined further over the last month as many companies, particularly in mainland Europe, have increased stocks.

The harsh reality is that prices are continuing to fall for dairy products everywhere in the world.

“As a board we have to balance the interests of individual farm businesses with the interest of the business owned by the same farmers.

“We have to set prices which reflect what we can achieve for the eventual product.

“We will continue to take whatever steps we can to reduce the impact of these negative market conditions, and ensure the business is in the best possible shape when the market turns.”