Muller holds milk price as retailer supplement drops

Dairy processor, Muller has confirmed its standard non-aligned milk price will remain unchanged until 1 June, but its retailer supplement will fall by just under half a penny.

Muller’s 1,900 producers will receive 26.69p/litre, as well as a 0.3p/litre supplement paid by retailers Aldi, Lidl and Morrisons, taking the paid price to 27p/litre.

See also: Arla’s 0.42p/litre April milk price cut slammed

This retailer supplement has fallen by 60% since February, and means Muller non-aligned producers will receive 0.44p/litre less than in March.

Muller producers on organic contracts will see prices rise by 1p/litre to 40.5p/litre from 1 May, following a company review of its positioning in the market.

Dairy analyst, Chris Walkland told Farmers Weekly last week that Muller would hold its prices, citing the implementation of its new contract as a key reason for them not to follow Arla in dropping farmgate milk prices.

“(Muller) will want to get all of its producers signed up to its new contract by 1 May and won’t want it to happen on the premise of a milk price cut.”