Muller drops milk price by 1p/litre from mid-February

Muller has announced a 1p/litre cut in farmgate milk prices from 15 February, claiming it can no longer protect its suppliers from the “realities of the market”.

The reduction will take the standard litre price paid to Muller Milk Group suppliers to 21.35p and that paid to Muller Direct Milk producers to 20.69p.

About 2,000 dairy farmers will be affected by the move.

See also: Read more stories from Farmers Weekly on milk prices

In a statement, the company said it was the first price drop it had made in five months.

The reduction reflected 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”.

Lyndsay Chapman, agriculture director of Muller Milk & Ingredients, said: “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 1p/litre, providing the required 30-day notice period.”