IT IS hotting up on the milk price front, with First Milk moving upwards this week, and Muller expected to follow.

Most buyers are now getting closer to the 30ppl farmgate mark – and Dairy Crest has already burst that bubble at 31ppl.

As a result of strengthening markets, First Milk confirmed that its members' prices will rise by either 1p and 1.1p per litre from September 1, dependent on their assigned pool. Producers in the Scottish pool get 1.1ppl, taking their standard litre to 27.49ppl, while for those in the Campbeltown creamery pool, the rise of 1p takes them to 27.87ppl.

Producers supplying Haverfordwest also get 1ppl, taking them to the top of the pile on 29.05ppl. Those in the Lake District also get an extra 1p, taking their price to 28.93ppl, while the Midlands producers get 1.1p, giving them 27.80ppl.

First Milk vice chairman Nigel Evans said: “We hope that this second consecutive price increase, along with the positive changes to our member payment structures that will take effect from September, will give our farmers confidence as we move into autumn.”

An NFU Scotland spokesman said: “Upward price movement is always welcome but feedback from several First Milk members suggests that every penny will be needed this autumn. The ongoing poor weather in the West means many members have already been forced into housing cows, feeding higher levels of concentrates and eating their way through precious first cut silage in August without second or third cuts even being made.

“All dairy farmers, regardless of who they supply, will believe that there is still significant price increases to come," said NFUS. "Reduced supply, spot market prices of 38p to 39ppl for milk and record prices for cream and butter must translate into further sizeable boosts to farmgate prices this autumn.”

One Campbeltown co-op member, Sandy Pirie, was certainly far from happy with the size of the co-op increase. The former First Milk area representative told The Scottish Farmer: “Once again we’ve been kicked in the nuts. We are still 2 to 3p behind everybody else. It is well known Haverfordwest is First Milk’s jewel in the crown and that's why they are top of the co-op league.

“With regard to cheese, it seems easier for them to sell what’s coming out of Aspatria, in Cumbria, than our Campbeltown cheese. Up here in Kintyre and the islands, we are the poor relations," he asserted. "Co-op bosses know we have little choice but to accept what we get or get out."

As The Scottish Farmer went to press on Wednesday, an announcement was expected from Muller, potentially putting its standard litre price up to 30ppl from October 1.

Last week, Dairy Crest led the way by announcing that it will increase the price it pays to its Davidstow farmers by 2ppl from October 1, on top of the 1ppl increase it made in September, bringing its base price to 31ppl, in a move welcomed by its producer group Dairy Crest Direct.

At the same time, Arla’s upward move of 0.81ppl takes its UK standard litre for conventional milk to 30.79ppl. Arla amba board director Jonathan Ovens said: “This is the third consecutive increase in Arla’s milk price, which is a result of the continuing strengthening of the markets.”

Meanwhile, producers with Bridge of Allan-based Grahams Dairies will get a 1p per litre rise from September 1, taking their standard litre price to 28.75ppl.