first milk

First Milk is to change its milk price formula to decrease the amount it pays members based on global ­commodity prices.

Under a revamped structure that comes into force in April, the dairy co-op will reduce the percentage paid from its ‘B’ formula from 20% to 10% of its monthly payments.

The AB pricing mechanism was introduced last year in a bid to force farmers to only produce milk that had a market, with the excess being paid at a lower ‘B’ price.