Cost pressures prompt First Milk, Saputo, Muller price rises

Concerns over supply, the impact of the recent extreme heat and volatile input costs have prompted more September milk price rises.

First Milk is moving up by 2.14p/litre to 48.64p/litre for a standard manufacturing litre of 4.2% butterfat and 3.4% protein.

This price includes the co-op’s 0.5p/litre member premium paid as a 13th payment, due in April 2023 for those who have reached their capital target, as well as the new 0.5p/litre regenerative farming bonus introduced from April this year.

See also: Read more about dairy markets and prices

First Milk farmer director and vice-chairman Robert Craig said: “The dairy markets appear to be stabilising somewhat and we continue to do everything we can to recover returns from the marketplace and deliver these to our members as quickly as possible, recognising the considerable inflationary cost pressures our members face.”  

Suppliers to the Davidstow cheese business through Saputo Dairy UK (SDUK) will get a 1.5p/litre price rise, while Muller will pay its producers who meet the conditions for Muller Advantage1 a 1p/litre uplift.

Both price increases will take effect from September.

At Saputo, the rise will take the standard manufacturing price suppliers will receive for their milk to 49.50p/litre, at 4.2% butterfat and 3.4% protein.

The company said it recognised that the extreme hot weather over the past month had added further pressure to on-farm conditions. 

It is the 10th consecutive monthly price increase from the processor, which has 300 supplying farmers, and follows a 1.25p/litre increase this month. 

Muller Direct producers will receive 46p/litre from 1 September for a standard manufacturing litre at 4.2% butterfat and 3.4% protein, plus a further 1p/litre for those meeting the Muller Advantage requirements, which is the vast majority of the 500 or so direct suppliers.

The processor is holding its organic milk price at 54p/litre for September, based on a liquid standard litre of 4% butterfat and 3.3% protein.

Rob Hutchison, joint chief executive at Muller Milk & Ingredients, said cost volatility continued on farms and throughout the company’s supply chain.

“We will do everything we can to support our farmers and protect the security of supply,’’ he said.

“We will closely monitor all of the factors which influence the farmgate milk price, including farm supplies in the coming months.”

The company has 1,300 supplying farmers, 500 of which are on Muller Direct contracts.

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