Müller cuts milk price to remain competitive

By Laurence Gibbons

- Last updated on GMT

Müller is the latest dairy firm to slash its milk price
Müller is the latest dairy firm to slash its milk price

Related tags Dairy Milk

Müller UK & Ireland aims to cut its milk price from 24.15ppl by 1.75ppl from March 5, 2015 in a bid to remain competitive.

The moves comes after its decision to hold its milk price for February “widened the gap”​ between its price and those offered by other processors, threatening its competitiveness, the firm claimed.

Carl Ravenhall, md of Müller Wiseman Dairies, said: “We continue to take very difficult and painful decisions within our company to ensure that our costs are as low as they can be, but our business cannot compete if the cost of the milk that we buy from farmers is substantially higher than that of our competitors.”

Price freeze

Earlier this month, Dairy Crest announced it would freeze its prices​ until at least July this year following its price cut for March. First Milk also revealed it would hold its price​ from March.

The market for farm-gate milk remains affected by high levels of milk supply from farms and weak demand for dairy products, said Ravenhall. But Müller would continue to pay a leading ‘clean’ price on all litres supplied by farmers, he claimed.

That meant the price offered by the Shropshire-based firm would not be further eroded by deductions or penalties imposed by competitors for reasons including, haulage or capital contributions, he said.

“We very much look forward to seeing an improvement in the market for farm-gate milk which can then be reflected in the milk price which we can offer,” ​he added.  

Müller also reaffirmed that farmers have a month’s notice of any price change and the flexibility to move elsewhere within three months if they chose to do so.

Not welcome cuts

Roddy Catto, chairman of the Müller Wiseman Milk Group, which represents dairy farmers that supply the company, said he did not welcome price cuts but they were necessary to remain competitive.

“As dairy farmers ourselves we do not welcome a further reduction in milk price but the board has worked effectively with Müller to ensure that the standard litre price offered from March remains one of the best available,” ​he said.

“We look forward with the company to a stabilisation of markets and a reversal in this downward and damaging trend.”

Standard litre returns for farmers for February and March ​ 




Müller UK & Ireland Group



Dairy Crest Liquid



Arla AMCo

24.87ppl (before deductions)

Not yet declared

First Milk Liquid

21.20ppl (before deductions)

21.20ppl (before deductions)

 Source: Müller

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