Muller has announced it will increase its formula milk price for November by 1.366p/litre for Direct Milk DPO members.
This takes the new standard litre price to 28.616p/litre for those on the simplified formula contract and 28.808p/litre to producers signed up to the core formula contract from 14 April.
Muller’s formula price has now increased 4.237p/litre in the past four months and is at its highest since June 2015.
Direct Milk DPO said the price rise came after four of the five AHDB Dairy parameters for September saw a rise.
Since April, cream returns have more than doubled, while the cost of concentrates, fertiliser and red diesel all increased in September.
Muller and Direct Milk DPO are in deadlock after the DPO rejected the processor’s November standard litre milk price rise of 1.5p/litre.
The DPO argued the rise to 20.94p/litre was not high enough and did not reflect the rise seen in the commodity markets.
The deadlock triggered will allow Direct Milk’s 650 members to serve three months’ notice on their contracts with Muller if they so choose.