Market Drayton dairy giant Müller to cut milk price
Dairy giant Müller is to cut a further 1.5p per litre from the price it pays farmers for milk in April.
The firm, which has a large site in Market Drayton, has announced that from the beginning of April the price it pays to 700 farmers on its Direct contracts will drop to 26.5ppl.
It comes on the back of cutting 1ppl from the price it pays farmers for milk in March.
Milk prices had been on an upward curve during 2017, bringing relief to under-pressure dairy farmers whose prices had been rock-bottom for more than a year.
But Müller today said global wholesale cream and butter values have deteriorated in the past six months and this, combined with higher levels of farm production, is continuing to put pressure on farm gate milk value.
Rob Hutchison, Müller Milk supply director, said: “Market forces have been moving against farm gate milk prices throughout the UK and we therefore have to adjust our position.
“However, Müller has invested heavily in the UK to create a balanced portfolio of added value branded and private label dairy products, and this is helping us to mitigate the full extent of the decline in dairy commodity values.
“We also remain focused on continuing our work with Müller Direct farmers through a range of initiatives designed to support business improvement, managing during periods of volatility and support for the next generation.
“We are confident that our agriculture strategy, UK investment and category development plans will continue to underpin a highly competitive milk price, regardless of market conditions, over the longer term.”