Dairy firm cuts farmgate milk price

Shropshire dairy products manufacturer Muller is to cut the price paid to its farmer suppliers by 0.5p/litre from 1 February.

In a letter to 150 local producers this week, the firm blamed tough trading conditions, disappointing sales in 2011 and high raw material costs for the decision.

Milk procurement manager Andrew Gaskell acknowledged farmers’ concern at the move, but said a “more competitive cost base” was needed in order to return to sales growth.

Muller’s standard litre price after the cut will be 28.9p/litre.