Milk price row: Muller boss writes to farmers defending what it pays suppliers
The boss of Muller has today written to all the company's farmer suppliers to defend the price it pays for milk and telling them they will pass on higher prices in the market.
As the company braces for more protests from farmers tonight, in response to Muller's decision to leave milk prices unchanged in September, boss Ronald Kers has written a long letter to suppliers outlining the company's position.
In it, he argues that the company has continued to pay above the market average for milk during the course of the downturn in prices, and says the company's suppliers have not been affected by the big fluctuations in the spot market, which affects produce bought for instant delivery.
That had exposed farmers to returns which plunged as low as 7p per litre, Mr Kers said.
"Given this is the route they chose it is only right that they immediately reflect the changes in spot market values as they begin to recover," Mr Kers said.
"But I would stress that whilst these increases are headline grabbing, they are only moving these competitor milk prices closer, on an average basis, to the price we pay to our farmers."
He added: "The fact that dairy markets are improving is very welcome news for is all. This will translate into higher milk prices. However the timing is dependent on when we actually realise these higher returns within our business."
MORE: Farmers for Action stage protest at Muller in Market Drayton
The letter also warns that milk collections can't be guaranteed when blockades are happening at farms.
"We are confident that our supplying farmers are not the ones who are turning up at our dairies intent on illegally seeking to halt operations, as opposed to peaceful protesting which we have no issue with," Mr Kers wrote.
"It is a little ironic that some of our most vocal critics have been looking to join us as suppliers."
