It takes the price for Muller direct farmers to 26.5ppl from April 1.
Muller has confirmed a 1.5ppl drop in the milk price for its 700 Muller Direct farmers to 26.5ppl from April 1.
It cited the deterioration of global wholesale cream and butter, combined with higher levels of farm production, putting pressure on farm gate milk values.
Rob Hutchison, Muller Milk supply director said: “Market forces have been moving against farm gate milk prices throughout the UK and we therefore have to adjust our position.
“However, Muller has invested heavily in the UK to create a balanced portfolio of added value branded and private label dairy products, and this is helping us to mitigate the full extent of the decline in dairy commodity values.
“We also remain focused on continuing our work with Muller Direct farmers through a range of initiatives designed to support business improvement, managing during periods of volatility and support for the next generation.
“We are confident that our agriculture strategy, UK investment and category development plans will continue to underpin a highly competitive milk price, regardless of market conditions, over the longer term.”