Hundreds of Muller Wiseman suppliers face a 0.85p/litre price cut for the milk they will produce in May.
This affects Muller Milk Group suppliers (formerly Muller Wiseman Milk Group suppliers) who will see their price drop to 19.15p/litre and former Dairy Crest Direct members, now Muller Direct Milk suppliers, at 18.49p/litre.
This will be the first time since 2007 that this last group will be paid less than 19p/litre for milk and represents a 43% cut from the market peak two years ago.
The processor said there were no winners in the current milk market and especially not among fresh milk processors. The reductions were due to the continuing extreme market volatility coupled with high levels of global milk supply.
“Market returns continue to be severely depressed creating an increasingly difficult trading environment as we approach the peak period of milk production,” said Lyndsay Chapman, agriculture director of Muller Milk & Ingredients.
“Milk price reflects the balance of supply and demand and all of us in the dairy sector desperately need a significant improvement in this balance to generate better returns.
“Regardless of the overall market environment, we will maintain our commitment to a competitive and clear farm gate milk price and contract proposition for the dairy farmers who supply us, ensuring that the headline price which we offer correlates to the returns which dairy farmers can expect.
“We are also committed to the principles of the voluntary code, so will always seek to provide 30 days’ notice of price adjustments.”
The 0.85p/litre price reduction does not cover Muller Direct Milk Formula suppliers, for which the latest forecast is 24.73p/litre for May.