FIRST Milk is raising the price for each of its three main milk pools.

The cheese pool price increases by 1.25ppl to 24.52ppl, the balancing pool by 1ppl to 24.27ppl, and the liquid pool price by 0.25ppl to 23.88ppl.

NFU dairy board chairman Mansel Raymond welcomed the announcement but said he could not ignore the fact that market indicators for cheese, butter and powder were still achieving 28ppl to 30ppl.

He said: “Even with today’s price increase, the gap between the market price and the farm gate price remains unsustainably wide. With costs also escalating on farm, First Milk members will be hoping that this is just the start of things to come.”

Mr Raymond said he was concerned at the continued lack of movement in the liquid market. He said: “Processors have been talking of a time lag, but this is a complete blockage and is further evidence that there are factors here which are preventing markets operating properly.

“If ever the Government wanted more evidence of market failure in the dairy industry to back our calls for regulation on contracts, then this has to be it.”