Milk price boost for dairy farmers as Muller payments rise

Shropshire's biggest dairy, based in Market Drayton, said the price it will pay farmers for milk from December will increase by 2p per litre to 22.94ppl.

In addition, farmers will benefit from the separate retailer supplementary payment, with the combined estimated returns in December for producers on non-aligned contracts exceeding 24.3ppl.

The latest price move means that Müller's non-aligned farmers will have seen an average milk price increase of 4.5ppl since October 1.

The process to equalise the milk price for both of Müller's non-aligned liquid contracts was completed last month, so the latest 2ppl increase will apply to both the original Müller Milk Group and Direct Milk farmers.

Lyndsay Chapman, agriculture director for Müller Milk and Ingredients, insisted the firm was committed to "building confidence" with farmers in the region.

She said: "We continue to deliver a competitive milk price which is supported by the separate retailer supplement and backed by our contract terms, which have security and transparency at their core.

"There is now a real need to build confidence at farm level.

"We understand current expectation surrounding the timing for milk prices to respond to the current upturn in commodity markets.

"We are not as directly linked to these highly volatile markets as some of our ingredients competitors.

"As a consequence our milk price profile is more stable and sustainable throughout the market cycle.

"We have a clear commitment to be competitive and through working with our MMG board farmer representatives, we will continue to deliver prices that reflect the improving returns achieved within our business."

Roddy Catto, chairman of the MMG Farmer Board, said: "We have worked closely with the Müller team over the past month to deliver this further and much needed increase in milk price that will apply to all non-aligned farmers.

"The whole MMG Board remains fully committed to this collaborative approach in order to achieve a more sustainable non-aligned milk price."

Shropshire NFU chairman Richard Yates, who farms near Bridgnorth, welcomed the price increase as he said winter was the most expensive time of year for dairy farmers.

He said: "The processors have dragged their feet this autumn. They were very quick with the race to the bottom in the previous six months.

"There has been an unacceptable delay.

"Farmers are struggling to pay ever increasing food bills – particularly animal feed costs which have risen since Brexit.

"I am glad to see the price rise and hope other processors will follow.

"Dairy farming is currently enjoying a good spell of weather which means we can keep cows outside and not have to supplement their feed.

"We are heading closer to the winter months where cattle are kept inside for about four months and prices rise. It is the most expensive time of year for farmers.

"What we really need is stability."