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Press release   •   Sep 30, 2016 14:55 BST

Müller has confirmed a further average milk price increase of 1.5ppl for its dairy farmers giving a contract price of 20.94ppl.

In addition Müller non-aligned dairy farmers will benefit from a valuable retailer supplement, estimated to be an additional 2ppl for November.

The combination of these two separate payments means that Müller non-aligned producers will realise returns of close to 23ppl for the month.

This latest price move, when added to the October increase, gives a total price rise of 2.5ppl for the company’s farmers on non-aligned contracts.The November increase will also see the completion of the price harmonisation process for Muller's two farmer groups following a request from the MMG Farmer Board.

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

“With winter approaching, dairy farmers are understandably anxious to see higher returns following significant increases in the value of dairy commodities and a tightening of supply.

“We will continue to reflect improved returns within our business but it is important to stress that in a challenging commercial and retail environment we must be competitive in comparison to other organisations who offer their farmers different levels of milk price returns, or choose to retain rather than pass on the extra supplements they are receiving from retailers.

“We know that farmers want to work with sustainable and progressive dairy companies and we are investing to add value to milk so that our farmers are not so exposed to the boom and bust nature of dairy commodities. This approach helped to protect our farmers during the worst of the downturn and we intend to ensure that we maintain our milk price track record as the market picks up.”

Roddy Catto, chairman of the MMG farmer Board commented:

"We have had extensive discussions with the Müller team. This November increase is a further positive and much needed increase for our farmers on non-aligned contracts. As a Farmer Board we pushed strongly for a higher level of price increase and will continue to do so. We understand each others' positions and challenges, both on farm and in the market place and we will continue to work together to deliver further price increases"

Ends….30 September, 2016

Issued by Müller Group Communications Tel +44 (0) 1355 598585 or +44 (0) 7900 430269.

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.