Shropshire Star

Milk price row: Muller price hike will boost Shropshire farmers

Farmers have received a further boost after dairy giant Muller revealed it is once again increasing its milk prices.

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Shropshire's biggest dairy, based in Market Drayton, said the price it will pay farmers for milk from November will increase by 1.5ppl to 20.94ppl.

In addition, Muller's non-aligned dairy farmers will benefit from a valuable retailer supplement, estimated to be an additional 2ppl from next month.

The combination of these two separate payments means that the firm's 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 dairy giant has claimed milk prices have "turned a corner" on the back of rising global demand for dairy products and a reduction in supply.

Lyndsay Chapman, agriculture director for Muller Milk and Ingredients, said: "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.

"We will reflect on 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.

"They 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 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."

Roddy Catto, chairman of the MMG farmer board, added: "We have had extensive discussions with the Muller team.

"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 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."

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