First Milk announced it will hold its milk price for May at 27.75p/l, while its manufacturing standard litre will be 28.68p/l.

“Yesterday’s milk price announcement from First Milk demonstrates a more confident picture, with processing capacity at both Harvardford West and Lake District creameries capable of handling up to 40,000t each, which equates to almost 800m litres of milk per annum,” said NFU Scotland’s milk chair, John Smith.

“With an expected higher spring flush, the company predicts to be delivering strong performances through its contracts and customer base, and a weaker spot price created by unplanned milk production within the UK.

“The message to all milk producers is to clearly discuss with your milk purchaser how much milk they require and work closely in partnership with them.

“As an industry, we must try to get the supply and demand balance correct, in order for everyone in the chain to get a reasonable return for their huge efforts and heavy investments.”