Milk price cut chills producers

The decision by some milk buyers farm gate pay cut the price of milk agriculture for they brought a pessimistic milk start to 2009 years.

In the past few days, the first milk and Arla has informed the suppliers, they are going to cut immediately in the farm gate price for 1.25 pence/litres of milk and 2 p per litre, respectively.

Peter humphries, chief executive officer farm fencing of the first milk, commented: "the economic environment has changed significantly over the past few months.

"The same conditions in the global dairy products market, promote the British milk prices up in 2007 and 2008, now has significant deterioration.

"Milk prices in continental Europe has refused to in the past few months, it is now have a affect UK. Therefore, the first milk committee has reluctantly decided, we have to cut our milk price of 1.25 pounds per liter from January 1, 2009."

Arla price cut 2 p per litre play in yesterday and be regarded as more destructive, because it mainly supply liquid milk market premium.

While other milk buyers is expected to make the price in the publication in a few weeks, graham jack, communications director Robert wiseman, is cautious optimism is in a position to save the current price in January.