Fresh shock for dairy farmers as Muller cuts milk price again
Dairy farmers in the region have received a fresh shock after Muller announced plans to cut more than 1p per litre from the price it pays for milk from next month.
The Market Drayton-based dairy giant has blamed a further downturn in the market for dairy products for its decision to further slash its standard milk price by 1.35p from April 1.
The move, caused by a combination of high levels of milk supply from farms and poor demand for dairy products, brings the price it will pay for a litre of milk to Muller Milk Group suppliers to 20p.
It also deals a blow to farmers who began supplying to the group following the acquisition of Dairy Crest's dairies operation on Boxing Day.
Muller Direct Milk suppliers – those who moved from Dairy Crest contracts – will now be paid 19.34p. This follows a 1p a litre price cut from February 15.
Rod MacBean, who farms in Aston, near Wem, said he wasn't surprised by the firm's latest announcement.
"There is an oversupply but it is not the massive situation they are making it out to be. We are being taken for a ride at the moment," he added.
Lyndsay Chapman, Muller's agriculture director, said: "In the current environment where the supply of milk from farms is substantially out of line with demand there are no winners in the dairy supply chain.
"Market returns are depressed and milk production forecasts for April suggest the months ahead are going to be very challenging for us all.
"We remain focused about the future and are investing heavily in the processing sector to innovate and add value to milk and to make our supply chain competitive.
"However, supply and demand is a major determinant of milk price and at the moment there is a significant imbalance which is having a severe effect on the value of farm gate milk.
"Our commitment is to maintain a fair and market-related milk price and honour our contract terms but we need the market to be more balanced, to generate better returns for dairy farmers."
It comes as further details have been announced about a march in London organised by campaign group Farmers For Action which is calling for changes in the industry.
The march will assemble at Waterloo Place at 11am on March 23 and then make its way to Trafalgar Square.
As part of the event campaigners are planning to present a letter to PM David Cameron outlining their concerns about the state of the industry.
