Müller confirms farm gate milk price hold for May and June

By James Pugh | Market Drayton | Business | Published:

Dairy giant Müller has confirmed that it will hold the milk price it offers to farmers at the current level for May and June.

Müller's plant in Market Drayton

The processor said it would keep its milk price at 26.25p per litre despite a dramatic decline in returns from markets for bulk cream and butter as the Covid-19 pandemic continues.

The company had communicated to its farmers its hope to increase its Müller Direct base price by 1ppl from May 1, but has said a rapid decline in returns from commodity dairy products with no current prospect of significant improvement has made it unviable to proceed.

Müller has operations in Shropshire at Market Drayton, Minsterley and Telford.

Rob Hutchison, operations director at Müller Milk & Ingredients, said: “The coronavirus challenges facing the dairy sector are well known and as we head closer to the Spring flush when farm milk production peaks there is more milk being produced on farms than there are markets for it.

"This is having a profound effect on the value of dairy products like bulk cream and butter.

“Our core focus on the retail sector and determination to maintain our obligations to feed the nation will continue and whilst we are not immune from dramatic dairy market changes, we aim to provide as much stability as we can during this extraordinary period.”

James Pugh

By James Pugh

Shropshire Star Business and Farming Editor.

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