Müller has confirmed that the milk price for its 700 Müller Direct farmers will reduce by 1.5ppl to 26.5ppl from April 2018.
Global wholesale cream and butter values have deteriorated in the past six months and this, combined with higher levels of farm production, is continuing to put pressure on farm gate milk values.
Rob Hutchison, Müller Milk Supply Director said: “Market forces have been moving against farm gate milk prices throughout the UK and we therefore have to adjust our position.
“However, Müller has invested heavily in the UK to create a balanced portfolio of added value branded and private label dairy products, and this is helping us to mitigate the full extent of the decline in dairy commodity values.
“We also remain focused on continuing our work with Müller Direct farmers through a range of initiatives designed to support business improvement, managing during periods of volatility and support for the next generation.
“We are confident that our agriculture strategy, UK investment and category development plans will continue to underpin a highly competitive milk price, regardless of market conditions, over the longer term.”