DAIRY suppliers have been dealt a new blow as First Milk reduced their June contract A milk prices by between 0.28ppl and 0.35ppl and increased their B prices by 1ppl.

The fall follows sharp criticism by the NFU over reductions by Arla, Dairy Crest and other processors.

NFU Cymru dairy board chairman Aled Jones said the recent Dairy Industry Newsletter conference was told that EU butter markers were exceptionally good with future prices up for June and July.

“I’d really like to know who is benefitting from this high cream and butter price because it clearly isn’t dairy farmers," he said.

"We’ve had spells of dry weather which has impacted on grass growth – and ultimately volumes – and with the GDT market continuing to strengthen; it makes no sense that we are now seeing milk price reductions."

Clive Sharpe, First Milk chairman commented: “You will be aware that there have been some price reductions in the market over the last few weeks, which have impacted the pricing mechanisms that we have in place with our customers.

“Looking ahead, there has been some upward movement particularly in short term markets, which is a welcome positive signal. As a result, the B price range for June is increased by 1ppl to 24ppl-25ppl and we anticipate that B prices for July will be a minimum of 25ppl.”