Müller direct milk price rises to 30.5ppl

Müller is to increase the farm gate milk price offered to dairy farmers to 30.5 pence per litre (ppl) from November 1st, 2017. The 0.5ppl increase means that 700 Müller Direct farmers will have seen their standard milk price rise by more than 10ppl in the year since autumn 2016.

Müller Agriculture Director Rob Hutchison said: “Global markets for dairy commodities like butter and cream are easing following the recent and unprecedented surge, with supply increasing and demand softening. However, we remain committed to offering a competitive milk price at each stage in the global dairy market cycle and are investing heavily to add value to the milk we buy.

“We are also working with farmer suppliers to ensure that production is more closely aligned with the requirements of our customers, and to introduce and encourage the use of tools which are designed to help manage milk price volatility.”

Müller has confirmed that 130 farmers are participating  in its 100 million litre Müller Direct Futures Contract. This provides the opportunity to fix a monthly price for up to quarter of each farmers milk production for up to 12 months ahead, offering higher levels of certainty over future milk price returns.

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About The Author

John Swire - Editor of Agronomist and Arable Farmer as well as responsibility for the Agronomist and Arable Farmer and Farm Business websites. After 17 years milking cows on the family farm John started writing about agriculture in 1998 and has since written for a variety of publications and has developed a wide circle of contacts within the industry. When not working John is a season ticket holder at Stoke City and also of late has become a fitness freak, listing cycling, swimming and walking as his exercises of choice.