Direct Milk DPO has rejected Muller Milk and Ingredient’s (MM&I) milk price increase for November.
The rise of 1.5p/litre to 20.94p/ litre was criticised by the DPO, which has now called deadlock for the first time. This allows its 650 members to leave MM&I on three months’ notice if they want to.
NFU chairman Michael Oakes said, “With wholesale prices racing upwards and milk volumes continuing to drop (8% down on the year) it’s about time we see significant farm gate milk price increases.
“Today’s +1.5p/ litre average move by Muller is a step in the right direction but in affect the money won’t hit farmers’ accounts until December.
“Clearly this is the message Direct Milk PO presented to the Muller management in their discussions, where they believe the price should be at least 25p/litre.”
The retailer supplement offered to Muller producers is likely to fall by up to a 1p/litre from 2.894p/litre making Muller’s actual rise substantially smaller.