Muller price cut a fresh hammer blow for milk producers

The Market Drayton-based business has announced it is to cut the price it pays to farmers by 1p to 23.15p per litre on August 1.

It marks the first time in five months that Muller UK & Ireland has changed the price it pays for milk, but follows a pattern set by other major dairies over the course of the last week.

Arla Foods announced earlier this week that its suppliers will see their prices cut by 1.18p to 23.81p per litre from next Monday. Embattled dairy-owned co-operative First Milk has also cut its price, by 1p per litre.

Martin Armstrong, head of milk supply for Müller, said: "We have worked to maintain a stable milk price to the farmers who supply us throughout the peak milk production period but we must now make this adjustment.

"All around the world, the imbalance between supply of milk from farms and demand for dairy products is weighing heavily on milk prices.

"We cannot buck this market, but we will continue to invest to increase the range of added value dairy products which we supply.

"Our commitment is to continue to offer one of the best non-aligned milk prices available across the UK."

Philip Rowney, chairman of the Müller Wiseman Milk Group which represents suppliers, added: "Members of the MWMG have already had to accept significant reductions in their milk price and this news will not be welcomed. It is a reality that the off farm production is far higher than last year and this is affecting the market.

"We will continue to work with the Müller management team to maintain as much stability as possible during what is an extremely volatile and damaging period for the British dairy farming industry."

Global dairy prices have continued their recent decline, and at the key international auction yesterday the price index fell by 5.9 per cent.

The last eight fortnightly sales, dating back to March 3, have all seen the prices paid for dairy produce fall.

Helen Cork, the NFU's Shropshire adviser, said: "This is yet another body blow to dairy farmers whose businesses have been in utter turmoil for the past 12 months, with 450 quitting dairy farming since this time last year in England and Wales.

"The recent series of cuts have highlighted the need for short-term solutions to address the problems happening now – farmers need urgent help from industry and Government."

She added: "We need Government to move away from paying lip service and focus on the here and now. Their long-term solutions must take a back seat while we focus on the immediate crisis."