Müller announces 1.25ppl price drop
Dairy giant Müller is to cut 1.25p per litre from the price it pays farmers on standard contracts for milk from March 1.
The firm, which has operations in Shropshire at Market Drayton, Minsterley and Telford, has announced the price would drop to 26.25ppl.
This would rise to 26.75ppl for farmers who satisfy the conditions for the Muller Direct Premium.
And farmers who opted to use its Fixed Price Contract Option will see returns for milk supplied to the company maintained at 28ppl.
More than a third of the 700 Müller Direct farmers use this option which maintains this price regardless of market conditions.
The firm attributed the drop to a surge in milk production from farms.
Rob Hutchison, milk supply director, said: “Supplies of milk from farms are well ahead of forecast and this is impacting the value of this milk.
"At times like this in the market cycle it is important that processors retain the flexibility to be able to offer different solutions.
"The Müller Fixed Price Contract is an innovative example and farmers who use this option have significant protection from this market volatility.”
