Milk prices will increase by 1.25ppl from February 1
Muller has announced a 1.25ppl milk price increase from February 1.
This brings the standard litre price for non-aligned producers to 26.69ppl. The retailer supplement for February is estimated to be 0.82ppl for February, bringing the actual price paid for February milk supply of 27.51ppl.
Prices have increased by 45 per cent since October 1 2016.
Muller has also said it expects to issue contracts documents in February, following a review.
Lyndsay Chapman, agriculture director at Muller Milk and Ingredients stated: "This latest increase again demonstrates our commitment to paying a competitive milk price to our farmers.
"Our business model enables us to deliver a more stable milk price profile and together with our confirmed investment programme for the future, is helping to build confidence at farm level.
"We are concluding what has been a very detailed process to review and finalise our new contract proposals, having taken on board the feedback from our farmers.
"We now expect to issue contract documents in February, for sign up to the new terms from the new milk year.
"We have also been working on our new representative structure with the MMG farmer Board with our immediate focus being the election of the Farmer Forum."
Roddy Catto, Chairman of the Interim Muller Milk Group board said: "This latest milk price increase will be welcome news for farmers supplying Muller.
"The Board will continue to work with the company to ensure the milk price reflects the market conditions and as dairy farmers we look forward to a more prosperous 2017."