Muller Wiseman has confirmed it will cut its November milk price by 1.9p/litre.
The news was leaked last week from a meeting of the business’ farmer board before the processor today announced its suppliers will be paid 27.1p/litre. The price is now 6.5p/litre lower than it was in April.
The company said milk production was beating all forecasts, forcing it to sell more on the spot market, where prices were as low as 22-23p/litre.
It also pointed out that cream was down 30% and butter 27% on the year.
Muller UK and Ireland head of group milk supply Martin Armstrong said the processor still offered one of the best available prices for farmers not on supermarket-specific contracts.
“Very high levels of milk production coupled with weaker demand for dairy commodities are having a sharp impact on farmgate milk prices,” he said.
“We share the concern of dairy farmers, who are anxious to see some signs of improvement in what is a very volatile market.”
UK milk production increased 0.9% in the week ending 20 September rather than continuing the seasonal slide, latest figures from Dairy Co have revealed.
Production is running about 9.3% higher than last year and 12.1% above the three-year average.
Muller Wiseman estimates this is equivalent to an extra 825 tankers of milk every week.
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