Cautious response to Muller milk price rise
Shropshire-based dairy giant Muller Wiseman has revealed it will increase payments to farmers who supply milk in the next few weeks.
Farmers supplying the Market Drayton-based dairy firm will be paid 32.27p per litre of milk from July until September to mark the start of a new payment system for farmers. Suppliers currently receive about 31p per litre.
But the rise will still fall short of the cost of producing a litre of milk, which campaign group Farmers for Action claim has risen from 32p per litre to 33.5 p per litre.
Campaign group leaders have reacted cautiously to the announcement, and have warned the new payment system is "far from simple".
From July, farmers currently supplying Muller Wiseman will be offered a new contract, which includes the option of linking their milk price to movements in the value of dairy commodities.
Dairy farmers have not been paid enough to meet the cost of producing milk for several years. Campaigners blockaded major dairies in protest last summer.
David Handley, chairman of campaign group Farmers For Action, said: "We obviously welcome the fact milk prices are rising on this formula, but what goes up, comes down. I would say to any farmer considering it to approach with caution. I want it to work and we will have a better idea in 12 months."
Oliver Cartwright, NFU Shropshire spokesman, said: "Anything that helps to make the dairy sector more open and transparent, especially around pricing, is welcome so this is good news for Shropshire farmers.
"If there is a milk price change, up or down, then they will be able to see exactly why because of this new formula milk price."
Pete Nicholson, agricultural affairs manager for Muller Wiseman Dairies, said: "We think there will be significant interest in this option but we want to stress that the formula price will expose dairy farmers to more of the volatility which comes with a direct link with global dairy commodities."
