Muller Wiseman cuts a penny off farmgate milk price

Muller UK & Ireland is the latest milk processor to issue a heavy milk price cut for the summer.

The Shropshire-based business has dropped the rate for its 1,200 British suppliers by a penny from 1 August.

Producers will be paid 23.15p/litre – more than 10p/litre less than the spring 2014 peak.

Muller’s news follows the decision by rival co-op Arla to take its price below 24p/litre from July.

Muller UK and Ireland head of milk supply Martin Armstrong said his firm had maintained a stable milk price during the peak production period.

But he said the company could not buck the market.

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

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

Milk production is still running well above last year’s record levels, with UK weekly deliveries up 2.7% on 2014.

Demand is yet to pick up significantly, with all eyes on the next benchmark Global Dairy Trade auction on 1 July.

Newly appointed chair of Muller’s farmer group Philip Rowney said the latest price news would not be welcome.

“We will continue to work with the Muller management team to maintain as much stability as possible during what is an extremely volatile and damaging period for the British dairy farming industry,” he said.