Cautious welcome for Muller milk price rise
Farmers have given a cautious welcome to dairy giant Muller Wiseman's decision to pay producers a penny more for each litre of milk, but have warned that the price must continue to rise to avoid more protests.
The Market Drayton dairy is to offer farmers on its basic pricing plan a 1p per litre increase to 32.5p from October 21.
The cost of production is estimated to be close to 32.5p a litre, so the new price brings Muller's producers on to an even keel, but they say they need more to reinvest in their businesses.
The move follows the latest round of protests last week, which saw angry producers blockading the Shropshire dairy.
David Handley, of protest group Farmers For Action, which organised the protests, welcomed the rise but said: "We are still a long way away from where we need to be. The formula quite clearly shows that is should be 34.55p per litre."
Farmers For Action also hit out at Roddy Catto, the chairman of the farmers' negotiations body the Muller Wiseman Milk Group, who called the protests "counterproductive". He said he had told organisers discussions had reached an advanced stage before the protests.
Mr Handley added: "I spoke to Roddy Catto last Thursday morning and said as part of what we are doing we are going to Muller Wiseman tonight, but before we go I want to know exactly what the state of play is.
"The reply I got was that there's nothing on the table and we are working hard."
Those who sell milk to the yoghurt giant through its alternative formula-based contract will receive 34.55p per litre between October and the end of the year, but because it is based on global stock markets, that price is volatile.
Jeremy Lowe, NFU regional diary adviser, said: "We welcome this price rise for our members and while we still need to see improvements it is a step forward from Muller Wiseman."
