The first price announced by the new-look Muller Milk and Ingredients includes a cut for Muller Milk Group and Muller Direct Milk farmers.
Muller has announced a 1p/litre slash in farmgate milk prices from 15 February, claiming it can no longer protect its suppliers from the “realities of the market”.
The NFU is urging all milk buyers to look at ways to help farmers manage price volatility and create stability.
The NFU has expressed its disappointment at the price drop, now 21.35ppl and 20.69ppl for the different contracts, but considers it in the context of Dairy Crest and Müller holding their prices during recent months of difficult markets conditions.
This is the first announcement the now merged liquid business has made. The NFU says it is unfortunate this has to be negative news for its 2000 suppliers.
NFU dairy board chairman Rob Harrison said: “Farmers must have some guarantee that milk buyers are doing all they can to manage price volatility for their own businesses as well as their suppliers.
“The Dairy Crest Direct formula was one way to manage this volatility – one that was welcomed and adopted by their farmers. It’s concerning that Müller has now given notice on the core and simplified formula contracts. We need more milk buyers to offer such mechanisms to help manage volatility for the primary producer and the end user.
“Over coming months Müller needs to work with its two farmer groups – Müller Direct Milk and Müller Milk Group – to develop initiatives that work for both the suppliers and the company in managing volatility going forward.
“With continued levels of high milk production in the UK and across the world we also need to encourage shoppers to buy British dairy products where possible – something the NFU is leading on with the Back British Farming campaign. We’d like to challenge retailers, food service and manufacturing to take responsibility in doing this too.”
