FIRST Milk's new pricing model has come under attack from the NFU.

The two-tier structure, which will affect hundreds of Cumbrian milk producers, masks another price cut, dairy board chairman Rob Harrison said.

The A price will be set at 20.87p per litre for the manufacturing pool and 20.5p per litre for the balancing pool; while the range for the B price is 16p to 18p, to be fixed after the month-end.

Mr Harrison claimed the B price would be paid on at least 20 per cent of a member’s total volume.

“Late last month, First Milk announced they were bringing in their new A and B pricing model from April and today we’ve seen what this delivers," he said.

"Their members will be feeling continued frustration with First Milk with this announcement of shockingly low prices for both the A and B volumes.

"Put simply, this is a price cut masquerading as a new pricing model. We have seen positive signals recently and this needs to feedback on to farm urgently."

First Milk chairman Sir Jim Paice offered some hope for the co-operative's members, predicting a ‘more positive’ future for milk prices.

He said: “There continues to be marked volatility in global dairy prices. Nevertheless, the recent movement of market indicators means that we are cautiously optimistic that the trend for future dairy prices is, at long last, a more positive one.

“However, there remain a number of uncertainties. For example, although the latest few GDT figures have been encouraging, as yet, they have not fed through to milk prices and many buyers are awaiting the outcome of the forthcoming spring flush.

“As a board, we will continue to monitor market indicators closely and build these into our decision-making on milk price.”