Muller has confirmed that its Muller milk price will be 27.50ppl for a standard litre from January 1
Muller has announced a price drop for January of 1ppl, taking the standard litre price for Muller Direct farmers to 27.5ppl.
Farmers who satisfy the conditions for the Müller Direct Premium 2019 will receive 28ppl on their qualifying litres.
The dairy said it reflects continuing declines in the market value of dairy commodities including cream and butter.
For the first time, the 28ppl headline price, which includes the 0.5ppl Muller Direct Premium, was in line with the price offered to farmers through the Müller Direct Fixed Price contract option.
More than a third of the 700 Muller Direct farmers opted to commit up to half of their milk supply to the Muller Direct Fixed Price contract option.
The option was aimed as a ’safety net’ as part of the dairy’s offering to reduce volatility.
Rob Hutchison, Milk Supply Director said: “We are continuing to see declines in returns from markets for cream and butter and like most processors exposed to the liquid milk sector, we are not in a position to ignore market realities.
“We are pleased that so many Muller Direct farmers have opted to use the measures we introduced to manage the effects of extreme market volatility.
“Those who opted in know that for that portion of their milk supply, they are fully protected from further negative market movements.
“We know that contract innovation of this kind is increasingly recognised and valued amongst dairy farmers who operate in markets which are consistently volatile.”