Müller raises milk price

12 Oct 2016

Müller has confirmed a further average milk price increase of 1.5ppl for its dairy farmers, noting that, with winter approaching, they are understandably anxious to see higher returns.

Müller has confirmed a further average milk price increase of 1.5ppl for its dairy farmers giving a contract price of 20.94ppl. In addition Müller non-aligned dairy farmers will benefit from a valuable retailer supplement, estimated to be an additional 2ppl for November.

The combination of these two separate payments means that Müller non-aligned producers will realise returns of close to 23ppl for the month.

This latest price move, when added to the October increase, gives a total price rise of 2.5ppl for the company’s farmers on non-aligned contracts.The November increase will also see the completion of the price harmonisation process for Muller's two farmer groups following a request from the MMG Farmer Board.

“With winter approaching, dairy farmers are understandably anxious to see higher returns following significant increases in the value of dairy commodities and a tightening of supply,” said Lyndsay Chapman, Agriculture Director for Müller Milk & Ingredients. “We will continue to reflect improved returns within our business but it is important to stress that in a challenging commercial and retail environment we must be competitive in comparison to other organisations who offer their farmers different levels of milk price returns, or choose to retain rather than pass on the extra supplements they are receiving from retailers.”

“We know that farmers want to work with sustainable and progressive dairy companies and we are investing to add value to milk so that our farmers are not so exposed to the boom and bust nature of dairy commodities. This approach helped to protect our farmers during the worst of the downturn and we intend to ensure that we maintain our milk price track record as the market picks up.”

"We have had extensive discussions with the Müller team,” said Roddy Catto, chairman of the MMG Farmer Board. “This November increase is a further positive and much needed increase for our farmers on non-aligned contracts. As a Farmer Board we pushed strongly for a higher level of price increase and will continue to do so. We understand each others' positions and challenges, both on farm and in the market place and we will continue to work together to deliver further price increases"