Müller dairy farmers are set to benefit from another average milk price increase of 1.5ppl, bringing the contract price up to 20.94ppl.
An additional retailer supplement of an estimated 2ppl litre for November will help Müller non-aligned farmers, giving them returns of around 23ppl for the month – a total price rise of 2.5ppl when added to the October increase.
The news came shortly after First Milk announced a 2ppl increase for October, the largest monthly increase for First Milk members since 2007, and Dairy Crest revealed a 1ppl rise in October with a further increase of 0.5ppl in November. Meadow Foods also upped their price by 1.5ppl for October.
Lyndsay Chapman, Agriculture Director for Müller Milk & Ingredients, commented:
“With winter approaching, dairy farmers are understandably anxious to see higher returns following significant increases in the value of dairy commodities and a tightening of supply.
“We will continue to reflect improved returns within our business, but it is important to stress that in a challenging commercial and retail environment we must be competitive in comparison to other organisations who offer their farmers different levels of milk price returns, or choose to retain rather than pass on the extra supplements they are receiving from retailers.
“We know farmers want to work with sustainable and progressive dairy companies and we are investing to add value to milk so our farmers are not so exposed to the boom and bust nature of dairy commodities. This approach helped to protect our farmers during the worst of the downturn and we intend to ensure that we maintain our milk price track record as the market picks up.”
Roddy Catto, chairman of the MMG Farmer Board, said:
“We have had extensive discussions with the Müller team. This November increase is a further positive and much needed increase for our farmers on non-aligned contracts. As a Farmer Board we pushed strongly for a higher level of price increase and will continue to do so. We understand each others’ positions and challenges, both on farm and in the market place and we will continue to work together to deliver further price increases.”
The price harmonisation process for Müller’s two farmer groups will also take place with the November increase at the request of the MMG Farmer Board.