Dairy farmer members of the Müller Wiseman Milk Group (MWMG) who receive the company’s standard litre milk price are to benefit from an increase to 31.5ppl*.
The increase of 1ppl with effect from June 1, 2013 comes against a backdrop of lower production on farms and strengthening global dairy commodity values.
The move again places the MWMG standard litre price ahead of the company’s major competitors and in addition, Müller Wiseman recently launched incentives for new and existing suppliers which are each worth up to an extra 1ppl on all production, not just incremental litres.
The milk price offered by Müller Wiseman has increased by more than 5ppl (19%) since October 2012, reflecting higher farm production costs, lower production of milk on farm and rising global commodity markets.
Martin Armstrong, Supply Chain Planning Director for Müller Wiseman Dairies said:
“We are committed to paying a competitive and straight-forward milk price and it is important to stress that unlike other milk buyers, this is not then immediately eroded by capital levies, membership retentions, haulage and balancing charges.
“Our milk price from June reflects continuing pressure on milk supplies and a strengthening in global dairy commodities. We believe that it is important to act in order to secure the milk required to meet our customers’ requirements.”
Roddy Catto, Chairman of the Müller Wiseman Milk Group said:
“We have had a very difficult start to the year. Milk production is down not just in the UK but around the world and we note increases in the value of dairy commodities as a result.
“This increase, which is being communicated today to meet demand from members for information, is a step in the right direction and we will continue to ensure that the team at Müller is fully aware of the challenges we are facing.
“We know that members expect written confirmation and the company has assured us that letters are being processed and posted as quickly as possible. ”
* Based on independent milkprice.com Flagship standard litre definition
The Müller UK & Ireland Group is wholly owned by Unternehmensgruppe Theo Müller. It has 21 sites nationwide and employs around 6,000 people across 3 businesses, Muller Dairy, Muller Wiseman Dairies and Muller Minsterley.
Müller Dairy is based in Market Drayton and is the UK’s leading yogurt manufacturer, with major brands such as Müller Corner, Mullerlight and Müller Rice. Müller Wiseman Dairies processes and delivers almost a third of the fresh milk consumed in Britain every day and is famous for its black & white cow-print branding.
The most recent addition to the Group is Müller Minsterley, the chilled desserts facility near Shrewsbury at which the Cadbury chilled desserts, including Cadbury Mousse, Trifle and twin-pot products, are made, which Müller sells under licence from Cadbury.
The Müller Wiseman Milk Group comprises 1094 dairy farmers. A total of 381 get the Müller Wiseman Group standard litre price with the remainder aligned to major customers who have their own milk pricing arrangements.
The Müller Wiseman Milk Group standard litre price is a ‘clean’ milk price with no member retentions, capital levies, balancing or haulage charges