Müller UK and Ireland has confirmed it will reduce its standard milk price by 0.85 ppl from 1 May 2016 due to the continuing extreme market volatility coupled with high levels of global milk supply.
This comes after Arla reduced its milk price.
Lyndsay Chapman, Agriculture Director of Müller Milk & Ingredients said: “Market returns continue to be severely depressed creating an increasingly difficult trading environment as we approach the peak period of milk production.
“As a result we unfortunately have to reflect this through a further reduction to our milk prices for May.
“Milk price reflects the balance of supply and demand and all of us in the dairy sector desperately need a significant improvement in this balance to generate better returns.
“Regardless of the overall market environment, we will maintain our commitment to a competitive and clear farm gate milk price and contract proposition for the dairy farmers who supply us, ensuring that the headline price which we offer correlates to the returns which dairy farmers can expect.
“We are also committed to the principles of the voluntary code, so will always seek to provide 30 days’ notice of price adjustments.”
The average standard liquid milk price for Müller Milk & Ingredients is 19.54 ppl.
By: Cattle Site News Desk
Source: The Dairy Site