The Muller Direct Milk formula contract price will decrease by 0.129ppl from June 1 to a standard litre price of 24.55 ppl.
The latest price cut reflects the continuing weakness of global commodity markets, particularly cream.
Muller’s formula price change is calculated monthly from any changes to the five parameters making up the Formula - cream, retail milk price, feed (concentrate), fertiliser and fuel.
Cream and feed are the biggest drivers.
The June price used April data, which showed a fall in the cream price and a reduction in the cost of feed and fertiliser with an increase in the fuel cost. The retailer milk price was static.
At the end of April, Muller announced a reduction of 0.49 ppl to its standard milk price from June 1.
This will take the average standard liquid milk price for Müller Milk & Ingredients to 19.11 ppl with an additional supplementary payment, currently 2.05ppl, to be confirmed.