Muller farmers see a further 1.35ppl price slash for April

Müller has confirmed a reduction in its standard milk price of 1.35ppl from 1 April 2016, against a backdrop of unprecedented levels of farm milk production forecast for spring, coupled with weak market demand.

Lyndsay Chapman, Agriculture Director of Müller Milk & Ingredients said: “In the current environment where the supply of milk from farms is substantially out of line with demand there are no winners in the dairy supply chain. Market returns are depressed and milk production forecasts for April suggest the months ahead are going to be very challenging for us all.

“We remain focused about the future and are investing heavily in the processing sector to innovate and add value to milk and to make our supply chain competitive. However, supply and demand is a major determinant of milk price and at the moment there is a significant imbalance which is having a severe effect on the value of farm gate milk.

“Our commitment is to maintain a fair and market related milk price and honour our contract terms but we need the market to be more balanced, to generate better returns for dairy farmers.”

The average standard liquid milk price for Müller Milk & Ingredients is 20.36 ppl

• milkprices.com standard litre – weighted average of Müller Milk Group and Müller Direct Milk standard Liquid milk price including the latest forecast for the Direct Milk Formula milk price.