Farmers call Muller milk price offer 'an insult'

The Market Drayton-based yoghurt maker has announced it will keep its milk prices for September unchanged.

It has led the National Farmers' Union to condemn the decision, which it says "beggars belief".

After two years of declines, the global value of milk has finally begun to turn around in the last few months, leading some suppliers to call for improving prices at the farm gate.

The prices will see 18.66p per litre paid to Muller Milk Group suppliers, and 18p per litre to those in its Direct Milk group.

NFU dairy board chairman Michael Oakes acknowledged that Muller's price remains competitive, but attacked the latest decision.

"Muller's non-aligned suppliers will be dumbfounded by Muller's decision to hold," he said. "It beggars belief. The decision is an insult to its suppliers and is completely out of line with recent positive market movements which are bringing some confidence to the industry at last.

"I'm sincerely hoping that Muller isn't hiding behind the retail supplements paid by Lidl, Aldi and Morrisons, rather than reacting to the market realities we are seeing in cream incomes, wholesale prices and volume reductions.

"Cream incomes to a liquid retailer have increased by a whopping 77 per cent since Muller last increased its base price and current daily deliveries of milk are down 10.2 per cent on this time last year."

Muller spokesman Graeme Jack said the company had continued to deliver a good price during the downturn in milk prices, adding that the company had not set up two-tier contracts that paid farmers less for surplus milk.

"Although our standard milk price for September is unchanged we are confident that it will continue to be competitive," he added.

"Whilst we agree with our Farmer Board that the markets are showing positive signals, we have a different view on when this can be translated into milk price."