MÜLLER UK & IRELAND GROUP ADJUSTS MILK PRICE TO 32.00PPL FROM JUNE 1, 2014

Müller UK & Ireland Group has confirmed that its milk price in May will remain unchanged, and has expressed confidence that its 32.00ppl price from June 1, communicated with one month’s notice to non-aligned farmer suppliers, will continue to be one of the most competitive in the country.

The move contrasts with a cut by a major competitor which took effect from 28^th April with just three days’ notice, which Müller highlights as an example of inconsistency in how the Voluntary Code principles apply across the industry.

Müller has also stressed that its headline milk price is ‘clean’ and not subject to significant deductions for balancing, capital levies, membership retentions, butterfat taxes or haulage charges. 

The 1.6ppl adjustment to the Müller Wiseman Milk Group (MWMG) standard milk price from June 1 reflects cyclical supply and demand volatility throughout Europe which has seen milk production hitting record levels and a significant weakening in returns from globally traded commodities like cream and butter.  

In the 20 months since August 2012, farm-gate milk prices offered by Müller have risen by 36% to their current level (from 24.73ppl to 33.60ppl),  and the company has stressed that whilst it must adjust its milk price from June to reflect current lower realisations, the long term outlook for the British dairy industry remains positive.

Martin Armstrong, Head of Group Milk Supply for Müller UK & Ireland Group said:

“Across Europe, farm-gate milk prices are reducing to reflect market changes. Whilst any correction in the farm-gate price is disappointing, the market is simply responding to higher levels of supply and a weakness in demand for dairy commodities.

“Our focus is on minimising the impact to the dairy farmer members who supply us directly with their milk and ensuring that the milk price proposition we offer remains competitive over the long term.

“Whilst UK farmgate milk prices are not immune to volatility and will be subject to increases and decreases over time, we believe that future prospects for British dairying are strong.”

Roddy Catto, Chairman of the Müller Wiseman Milk Group Board which represents dairy farmers who supply Müller said:

“Unlike the situation facing our colleagues elsewhere in the industry, this agreement means no immediate price cut for May.

“Whilst the board is disappointed with a decrease from June, it is clear that given production levels off farm both locally and globally have been high and commodities are currently on a downward trend, the MWMG price is likely to be amongst the most attractive available to farmers who are not part of supermarket groups.

“We have worked constructively with Ronald Kers and his team on this issue to minimise the extent of this reduction and will continue to do so on behalf of the MWMG members.”

Notes to Editors

1. Müller UK & Ireland Group

Müller UK & Ireland Group is wholly owned by the Unternehmensgruppe Theo Müller. It has 19 sites nationwide and employs almost 6,000 people across four business units: Müller Dairy, Müller Wiseman Dairies, Müller Minsterley and TM Telford.

Based in Market Drayton, Müller Dairy is the UK’s leading yogurt manufacturer, with major brands such as Müller Corner, Müllerlight and Müller Rice.

Müller Wiseman Dairies processes and delivers around 30% of the fresh milk consumed in Britain every day and is famous for its black & white cow-print branding. In December 2013, the business formally opened a major new state of the art butter-making plant in Shropshire, with the capacity to produce up to 45,000 tonnes of salted, unsalted and lactic butter each year.

Müller Minsterley is our facility near Shrewsbury at which chilled desserts including Cadbury Mousse, Trifle and Twin-pot products are made which Müller sells under license from Cadbury.

TM Telford is a state of the art yogurt production facility in Telford, Shropshire which is focused on the development of the company’s presence in the UK private label yogurt market.

To make its range of dairy products, the company buys milk from more than 1,200 British dairy farmers, all of whom are Red Tractor Farm Assured.

Müller Wiseman Milk Group dairy members elect a representative farmer board which works with the company to discuss milk supply issues, including the Group’s commitment to maintain a competitive milk price and contractual position.

2.  Information on wholesale prices for dairy commodities is available here: http://www.dairyco.org.uk/market-information/milk-prices-contracts/wholesale-prices/uk-wholesale-prices/