Müller has confirmed that the milk price for its 700 Müller Direct farmers will reduce by 1.5ppl to 29.00ppl from January 2018.
The 5% reduction in milk price offered by the business to farmers follows a 25% decline in the UK values of commodity bulk cream and butter since September 2017.
Rob Hutchison, Müller Agriculture Director said: “Substantial movement in butter and cream values is now a familiar characteristic of global dairy commodity markets.
“Whilst we are disappointed to see this sharp decline, the extensive portfolio of added value dairy products we make in the UK will shield farmers from the full volatility of global dairy commodity markets. We will continue to offer a stable and competitive milk price at each point in the market cycle.
“In addition Müller Direct dairy farmers have access to innovative tools and support including the Müller Futures Contract and Müller Farm Insights, which provides consultancy to help improve farm resilience.”