News FirstMilk
British processor is the first to raise milk money in 2021
The British dairy cooperative First Milk has announced that it will increase the milk price for January 2021. The processor is the first to come up with a change for the new year. The increase is remarkable, as Brexit is causing unrest in the British dairy market.
The milk money will increase by 0,25 pence per liter to 28 pence per litre, which is the equivalent of €0,30 per litre. The members' premium remains at 0,50 pence per litre. Despite the uncertainty, Vice-President Robert Craig says that the good performance of First Milk in 2020 has led to an increase in the milk price.
Uncertainty
Partly due to the uncertain future, First Milk has opted to increase, with a stable member premium. According to Craig, members value stability all the more in times of uncertainty. In addition, last year's good results meant that an increase was possible, even though the outlook is likely to have a negative effect on future returns.
The uncertainty surrounding Brexit is in it the dairy trade† Where the United Kingdom normally sells its surpluses in Europe, it will become a lot more difficult after Brexit. Brexit will ensure that the UK becomes a third trading country, which means that certain health certificates, customs procedures and checks are required for dairy trade, among other things, which will cost extra money and time. Time that fresh products often do not have.
Jorine Cosse
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