Muller slashes milk price in week of processor cuts

Muller is to cut its standard litre milk price by 1.35p/litre from 1 April.

For producers supplying Muller Direct Milk (ex Dairy Crest Direct) this will drop their standard litre milk price to 19.34p/litre.

Farmers in the Muller Milk Group  (ex Muller Wiseman Milk Group) will see their standard litre milk price fall to 20p/litre, while for those on a Muller Direct Milk Formula contract will see theirs drop to 25.16p.litre.

The move comes just a day after First Milk and Wyke Farms also announced milk price cuts and suppliers to Dairy Crest were told on Friday (26 February) they faced price cuts unless they signed up to a new contract.

Also, on Tuesday (1 March) Arla gave notice to up to 50 of its direct suppliers.

See also: Dairy Crest farmers must sign new contract or face price drop

Muller said the decision, announced on Tuesday (1 March), was made against a backdrop of unprecedented levels of farm milk production forecast for spring and weak market demand.

“Market returns are depressed and milk production forecasts for April suggest the months ahead are going to be very challenging for us all”
Lyndsay Chapman, Muller

Lyndsay Chapman, agriculture director at Muller, said the current environment meant there were “no winners” in the dairy supply chain.

“Market returns are depressed and milk production forecasts for April suggest the months ahead are going to be very challenging for us all,” she said.

See also: Muller drops milk price by 1p/litre from mid-February

“We remain focused about the future and are investing heavily in the processing sector to innovate and add value to milk and to make our supply chain competitive.

“However, supply and demand is a major determinant of milk price and at the moment there is a significant imbalance which is having a severe effect on the value of farmgate milk.

Muller cut its February milk price by a 1p/litre after claiming it could no longer protect its suppliers from the “realities of the market.” About 2,000 farmers were affected.

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