Müller has confirmed that it is to adjust its milk price for the first time in five months.
The reduction of 1ppl from 15th February reflects a further weakening in the market for dairy products caused by very high levels of supply from farms coupled with poor demand for dairy commodities.
Müller continues to invest heavily to add value to farm gate milk by making a range of dairy products including fresh milk, cream, butter, flavoured milk, yogurt, chilled desserts and powder. As a result it offers a leading milk price to dairy farmers on standard Liquid contracts.
Lyndsay Chapman, Agriculture Director of Müller Milk & Ingredients said:
“Our strategy is to add value to the milk we buy from the 2,000 dairy farmers who supply us and we remain committed to offering competitive milk prices and contracts. We are very aware of the pressures on farm resulting from the depressed marketplace and have tried to provide stability by maintaining the milk price since September, despite very difficult and declining market conditions.
“However, we cannot fully protect our dairy farmer suppliers from the realities of the market which continues to be badly affected by high levels of supply and very weak commodity prices.We have therefore had to reduce the milk prices we pay to our farmers by 1ppl, providing the required 30 day notice period.”
Milk prices offered by the company from 15th February 2016 are as follows:
Müller Milk Group (ex Müller Wiseman Milk Group) – 21.35ppl
Müller Direct Milk (ex Dairy Crest Direct) – 20.69ppl
[Based on a standard litre as quoted by milkprices.com]
Notes to Editors
- Farmers Representation- Müller will engage with representatives from its farmer groups – Müller Milk Group (ex Müller Wiseman Milk Group) and Müller Direct Milk (ex Dairy Crest Direct liquid farmers)– to discuss and agree the most appropriate representational structure for the future.
- Contract Harmonisation – will be discussed with farmer representatives. Any change to contracts will take the required notice periods into account.
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.