Müller confirms 2ppl milk price increase

Müller has confirmed the milk price for its non-aligned liquid contracts will increase by a further 2ppl from December 1.

Farmers will also benefit from the separate retailer supplementary payment, with the combined estimated returns in December for producers on non-aligned contracts exceeding 24.3ppl.

This latest price move means that Müller’s non-aligned farmers will have seen an average milk price increase of 4.5ppl since October 1.

The process to equalise the milk price for both of Müller’s non-aligned liquid contracts was completed last month, so the latest 2ppl increase will apply to both the original Müller Milk Group (MMG) and Direct Milk farmers.

Agriculture director for Müller milk & ingredients Lyndsay Chapman said: “We continue to deliver a competitive milk price which is supported by the separate retailer supplement and backed by our contract terms, which have security and transparency at their core.

“There is now a real need to build confidence at farm level."

Improved prices

Ms Chapman said Müller understood the current expectation surrounding the timing for milk prices and will continue to be competitive and deliver improved prices.

“We understand current expectation surrounding the timing for milk prices to respond to the current upturn in commodity markets,” she said. “We are not as directly linked to these highly volatile markets as some of our ingredients competitors.

“As a consequence, our milk price profile is more stable and sustainable throughout the market cycle.

“We have a clear commitment to be competitive and through working with our MMG Board farmer representatives, we will continue to deliver prices that reflect the improving returns achieved within our business.”

Roddy Catto, chairman of the MMG Farmer Board commented: "We have worked closely with the Müller team over the past month to deliver this further and much needed increase in milk price that will apply to all non-aligned farmers.

“The whole MMG Board remains fully committed to this collaborative approach in order to achieve a more sustainable non-aligned milk price."