Muller cuts milk price

The Farmers Guardian reports that Muller has cut standard litre milk prices for April by 1.35 ppl, suggesting that there will be unprecedented levels of farm milk production during the Spring, coupled with a weak market demand.

This announcement, which effectively takes prices to 20.36 ppl comes amid a raft of cuts from the UK's major milk processors.  First Milk and Dairy Crest have announced changes to farmgate milk prices and Arla has handed 12 months' notice to direct supply farmers.

Lyndsay Chapman, agriculture director for Muller Milk & Ingredients is quoted as saying: " In the current environment, where the supply of milk from farms is substantially out of line with demand, there are no winners in the dairy supply chain."  He went on to say that "market returns are depressed and milk production forecasts for April suggest the months ahead are going to be very challenging for us all."

The price reduction will take effect from 1st April and follows a 1 ppl cut for Muller farmers in February 15.

Ms Chapman commented that the firm was committed to maintaining a fair and market-related price and to honouring its contract terms.