Shropshire-based Müller holding milk prices
Dairy giant Müller has confirmed the milk price it will pay farmers for standard contracts will be unchanged in February.
The price announced by the firm will be 27.50p per litre for a standard litre from February 1.
This means that Müller Direct farmers who satisfy the conditions for the Müller Direct Premium 2019 will receive 28ppl on their qualifying litres.
Farmers who opted to use a Müller Fixed Price Contract Option introduced earlier this year will also see returns for milk supplied to the company maintained at 28ppl.
More than a third of the 700 Müller Direct farmers committed up to half of their milk supply to the Müller Direct Fixed Price contract option, which sees the 28ppl milk price maintained regardless of market conditions.
The move is one of a number of measures introduced by Müller to provide stability in a sector which continues to experience high levels of market volatility and unpredictability.
The firm has operations in Shropshire at Market Drayton, Minsterley and Telford.
Rob Hutchison, milk supply director, said that the contract was protecting farmers from the volatility of the market.
He said that it had shown its worth when set against a market which remains difficult to predict.
He said: “In the current environment, characterised by supply and demand changes which are affecting the value of commodities like butter and cream, we are pleased to be able to keep our standard litre milk price unchanged for the month of February.
“In markets which remain hard to predict, the Müller Fixed Price Contract is showing its value.
“Farmers who opted to hedge a portion of their milk supply against this contact option know that they have significant protection from this volatility."
