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MÜLLER CONFIRMS 2PPL MILK PRICE INCREASE

Press Release   •  Oct 28, 2016 11:00 BST

Müller has confirmed that the milk price for its non-aligned liquid contracts will increase by a further 2ppl from 1 December. In addition farmers will benefit from the separate retailer supplementary payment, with the combined estimated returns in December for producers on non-aligned contracts exceeding 24.3ppl.

This latest price move means that Müller’s non-aligned farmers will have seen an average milk price increase of 4.5ppl since 1 October. The process to equalise the milk price for both of Müller's non-aligned liquid contracts was completed last month, so the latest 2ppl increase will apply to both the original Müller Milk Group (MMG) and Direct Milk farmers.

Lyndsay Chapman, Agriculture Director for Müller Milk & Ingredients said:

“We continue to deliver a competitive milk price which is supported by the separate retailer supplement and backed by our contract terms, which have security and transparency at their core.

“There is now a real need to build confidence at farm level. We understand current expectation surrounding the timing for milk prices to respond to the current upturn in commodity markets. We are not as directly linked to these highly volatile markets as some of our ingredients competitors. As a consequence our milk price profile is more stable and sustainable throughout the market cycle.

“We have a clear commitment to be competitive and through working with our MMG Board farmer representatives, we will continue to deliver prices that reflect the improving returns achieved within our business.”

Roddy Catto, Chairman of the MMG Farmer Board commented:

"We have worked closely with the Müller team over the past month to deliver this further and much needed increase in milk price that will apply to all non-aligned farmers. The whole MMG Board remains fully committed to this collaborative approach in order to achieve a more sustainable non-aligned milk price."

Editors Notes

  • Standard Litre (based on www.milkprices.com) milk price for December: 22.94 ppl this is before the addition of calculated retailer supplementary payment
  • The separate retailer supplementary payment is paid to all supplying farmers on non-aligned liquid contracts. The actual calculated supplement paid for September was 2.883ppl and for December is estimated at 1.4 ppl.
  • Organic milk price - Müller has also confirmed a 1.5 ppl price increase for all direct suppliers on its Organic contract. This increase has been agreed with the Organic Committee and will apply from 1 December.

Müller UK & Ireland

Müller UK & Ireland is wholly owned by the Unternehmensgruppe Theo Müller. It employs around 10,000 people in a business which comprises two distinct business units: Müller Milk & Ingredients and Müller Yogurt & Desserts.

Based in Market Drayton, Müller Yogurt & Desserts is the UK’s leading yogurt manufacturer, responsible for major brands such as Müller Corner, Müllerlight and Müller Rice. It also produces, at production facilities in Minsterley near Shrewsbury, chilled desserts including Cadbury Bubbles of Joy, Pots of Joy, Layers of Joy and Twin-pot products under licence from Mondelez International.

Müller Yogurt & Desserts also supplies the UK private label yogurt market from a state of the art yogurt facility in Telford, Shropshire.

Müller Milk & Ingredients aims to be the biggest and best fresh milk and ingredients business with a network of dairies and depots servicing customers throughout the country, producing skimmed, semi-skimmed, whole, and flavoured milk products for brands such as Black & White, The One, freshnlo and FRijj . It also has the capacity to produce salted, unsalted and lactic butter each year for both the domestic and international markets.

The acquisition of Dairy Crest’s dairy operations in December 2015 marked a milestone in Unternehmensgruppe Theo Müller’s global growth strategy and in particular its aspiration to place much more emphasis on end to end supply chain innovation, adding value to the UK dairy category.