Müller has confirmed that it is to adjust its milk price for the first time in five months.
The reduction of 1ppl from 15th February reflects a further weakening in the market for dairy products caused by very high levels of supply from farms coupled with poor demand for dairy commodities.
Müller continues to invest heavily to add value to farm gate milk by making a range of dairy products including fresh milk, cream, butter, flavoured milk, yogurt, chilled desserts and powder. As a result it offers a leading milk price to dairy farmers on standard Liquid contracts.
Lyndsay Chapman, Agriculture Director of Müller Milk & Ingredients said:
“Our strategy is to add value to the milk we buy from the 2,000 dairy farmers who supply us and we remain committed to offering competitive milk prices and contracts. We are very aware of the pressures on farm resulting from the depressed marketplace and have tried to provide stability by maintaining the milk price since September, despite very difficult and declining market conditions.
“However, we cannot fully protect our dairy farmer suppliers from the realities of the market which continues to be badly affected by high levels of supply and very weak commodity prices.We have therefore had to reduce the milk prices we pay to our farmers by 1ppl, providing the required 30 day notice period.”
Milk prices offered by the company from 15th February 2016 are as follows:
Müller Milk Group (ex Müller Wiseman Milk Group) – 21.35ppl
Müller Direct Milk (ex Dairy Crest Direct) – 20.69ppl