Muller has written to its suppliers to ’set out a bit more context’ about their milk pricing
Muller has written to its UK suppliers to explain their milk prices following protests at their plant in Market Drayton.
Ronald Kers, CEO, said in the letter they wanted to add context to their milk pricing position directly rather than suppliers hearing it ’through the rhetoric of others not associated with us’.
The letter said Muller were committed to offering a competitive milk price and the improving dairy markets will translate into higher prices once the returns are realised within the business.
"As the past few months have shown, our milk price doesn’t track the extremes of the spot market," he said.
"During this difficult period, many of our competitors introduced contract variances at short notice which exposed their farmer suppliers to spot market returns which were as low as 7 pence per litre.
"Given that this is the route they chose it is only right that they immediately reflect the changes in spot market values as the market begins to recover.
"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 you, our farmers."
Farmers for Action (FFA) protested at Muller’s site following their decision to hold prices in September.
Mr Kers said: "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."
However, FFA chairman David Handley said many of Muller’s suppliers had contacted the FFA asking them to ’address the lack of money coming from their buyer’.
FFA are planning more protests for this Thursday at Muller sites including Market Drayton and two other sites around the country.