Müller raises its farmgate milk price

Dairy farmer suppliers to the Shropshire-based processor will receive a milk price of 33.6p per litre (ppl) from April 1, an increase on the company’s current litre price of 32.5p.

According to the firm, some 50 to 60 of its dairy producers across Yorkshire and northern parts of Lancashire will receive the new rate.

The adjusted price comes as the company announced that it is closing a scheme which allows new producers to earn up to an additional 1ppl for increasing supply over the previous year’s production - an incentive introduced as part of a recruitment drive during the 2013/14 milk year.

Instead, all of the firm’s suppliers, regardless of whether they supply milk for a particular retailer through Müller, will benefit from the new standard litre price.

There will still be additional payments for its larger producers however, who will be able to claim volume bonuses of up to 2.2ppl.

Roddy Catto, chairman of the Müller Wiseman Milk Group (MWMG) Board, which represents farmers who supply the company said: “Whilst the majority of MWMG members earned an extra 1ppl in the last year by increasing production, some were simply unable to achieve this through no fault of their own.”

Martin Armstrong, the firm’s head of group milk supply, added: “Our reputation for offering a competitive, clean, straightforward milk price with no deductions or balancing charges is the basis of our success in maintaining our supply base to the benefit of our customers, and building the Müller Wiseman Milk Group.

“Whilst our 2013 recruitment and expansion incentive for new and existing producers was innovative and served its purpose very well, we want to continue to retain and attract new members in 2014 by further enhancing the simplicity of our proposition.

“We are pleased to build on our reputation for providing a straightforward correlation between the headline price and cash returns each month.”