Blow for farmers as Muller cuts milk price again
Farmers in the region have been hit with a fresh blow after dairy giant Muller announced plans to again cut the price it pays for milk.
The Market Drayton-based dairy firm has blamed a further downturn in the market for dairy products for its decision to reduce its standard milk suppliers' price by 0.49p per litre from June 1.
The move brings the price it will pay for a litre of milk to Muller Milk Group suppliers to 18.66p.
It also affects farmers who began supplying the group following the acquisition of Dairy Crest's dairies operation on Boxing Day.
Muller Direct Milk suppliers – those who moved from Dairy Crest contracts – will now be paid 18p. This follows a 0.85p a litre price cut previously announced by the dairy firm that will take effect from tomorrow.
Rob Newbery, NFU regional director, described the current situation for farmers as "perilous" following the announcement.
"With farm gate milk prices at or below 20ppl for the majority of dairy farmers in Shropshire, a cut such as this takes a farm business further into the red," he said.
"Over a year this is another £5,000 cut from an average dairy farm's cash flow.
"Figures released by Defra this week show that farming profitability has fallen by 29 per cent and is at its lowest level since 2007.
"The impact of this is farming families facing an uncertain future, farm borrowing rising and the security of our local food production and security at threat. These are truly perilous times for the farmers in the county.
"The NFU continues to lobby and do all it can for the sector, working with our dairy members."
Lyndsay Chapman, agriculture director of Muller Milk & Ingredients, said: "Markets continue to be severely depressed due to the balance of supply and demand. The ongoing impact of this environment is increasingly challenging for all of us within the dairy sector.
"We recognise that any further price reduction is difficult news for our farmers but we remain committed to paying a competitive and transparent milk price.
"Our farmers appreciate the retailer supplementary payments paid by a number of our customers, which currently equate to over two pence per litre and cushion the impact of the current market conditions to some extent.
"We have again provided 30 days' notice of this price change in recognition of the principles of the Voluntary Code."
