FIRST Milk has confirmed the completion of a new long term contract with Nestlé UK, cementing a deal which kicked-off in 2003.

Co-op chief executive Mike Gallacher said: “Nestlé are a hugely important customer for First Milk and I am delighted to see this relationship renewed for the long term.

“Nestlé have consistently supported British dairy farmers and are at the forefront of driving best practice on responsible sourcing and sustainability. Initiatives like our shared next generation young farmer program demonstrate a long term and strategic commitment to the UK supply chain.”

The Nestle sites supplied by First Milk are at Girvan and Dalston in Cumbria. Lead milk buyer Robin Sundaram commented: “We are delighted to renew our commitment to First Milk and to our Nestlé farmers.

“Good quality milk is a key ingredient in some of our iconic brands such as Nescafe and KitKat. We look forward to continuing our strategic long-term partnership to drive our vision of supporting our farmers and our environment.”

Meanwhile, First Milk producers in the Midlands and East Wales pool will see a 0.2p per litre increase in March, but the price for producers in the co-op’s other milk pools remains unchanged.

Co-op chairman Clive Sharpe commented: “Following eight consecutive milk price rises which have cumulatively delivered around 11ppl onto our members’ milk price, returns have stabilised over the last month. Our Milk Price Index shows that our prices are now more competitive than at any point in past, as a result of First Milk being a leaner, more focused business.”