Müller has confirmed that the milk price for its standard contract will increase by 1.5 ppl from 1 August 2017, delivering a standard litre price of 27.69 ppl.
Agriculture director, Rob Hutchison said: “Against a backdrop of very healthy increases in the market value of globally traded dairy commodities we are now starting to realise improved returns which we can reflect in a higher milk price for August.
“If the market can sustain these higher values, we are confident that this will help to drive higher farm gate milk prices in the months ahead.
“It is important to stress that the Müller milk price will always be less impacted by violent swings in commodity dairy market values.
“By investing heavily to add value to milk in the UK we can offer a competitive milk price at every point in the market cycle, not just when markets are strong.”
“We will continue to monitor both market returns and our direct milk supply volume and review our position with the MMG Board as we move towards the trough period.”
The price change has been notified to farmers with 30 days’ notice in line with Voluntary Code guidelines.
This price rise comes alongside rises from Arla (1ppl) Grahams Dairies (1.5pp) and Glanbia Cheese (1ppl).