Market Drayton dairy giant Muller set to raise milk price – and is 'confident' of more increases
Dairy farmers who supply to Muller are to receive a 1.5 p per litre increase in the price they receive for milk next month.
The Market Drayton-based dairy giant also said it expected prices to continue increasing amid a stronger market for milk that has seen the price paid to suppliers steadily rise over the course of the last year.
The rise next month will take the standard price for a litre of milk to 27.69p.
Muller agriculture director Rob Hutchison said: "Against a backdrop of very healthy increases in the market value of globally traded dairy commodities we are now starting to realise improved returns which we can reflect in a higher milk price for August.
“If the market can sustain these higher values, we are confident that this will help to drive higher farm gate milk prices in the months ahead.
“It is important to stress that the Müller milk price will always be less impacted by violent swings in commodity dairy market values.
“By investing heavily to add value to milk in the UK we can offer a competitive milk price at every point in the market cycle, not just when markets are strong.
“We will continue to monitor both market returns and our direct milk supply volume and review our position with the MMG Board as we move towards the trough period.”
Muller's suppliers also receive a retailer supplement worth 0.3p, although as this is designed to support farmers in times of difficulty ist is expected to drop in value as the basic milk price continues to improve.
It is one of a number of dairies to improve prices as the value of milk around the world gets stronger.
The milk price is now delivering a far higher return for farmers, who had been struggling with loss-making operations for more than a year while farm-gate prices remained depressed.
The rock-bottom prices had led to protests outside dairies, including at Muller's Market Drayton facility.
