Market Drayton-based Müller to cut milk price paid to farmers
Dairy giant Müller is to cut 1p per litre from the price it pays farmers for milk in March, in a blow to the industry's recovery.
Milk prices had been on an upward curve during 2017, bringing relief to under-pressure dairy farmers whose prices had been rock-bottom for more than a year.
But Market Drayton-based Müller has now announced that from the beginning of March the price it pays to 700 farmers on its Direct contracts will drop by 1p per litre to 28p.
The firm, which has headquarters in Market Drayton, said the announcement follows an easing of returns over the past six months for products like cream and butter which trade in global commodity markets.
Rob Hutchison, Müller milk supply director, said: "Weaker dairy commodity prices coupled with higher levels of off farm production, are combining to put pressure on farm gate milk prices at the moment.
"We continue to place a focus on adding value to the milk that we buy by increasing the portfolio of Müller branded and private label products we make. This gives dairy farmers greater protection from the full impact of these cyclical market challenges."
Müller has been among the dairy companies attempting to mitigate fluctuations in the price of milk, with farmers offered the chance to fix the price they are paid for some of their produce for a year in advance.
