On Friday, Muller confirmed a price increase of 1.5 pence per litre for its suppliers, from November. The increase - which Muller announced with a month’s notice as per the guidelines in the sector’s voluntary code - means suppliers will be on a contract price of 20.94ppl from 1st November.
 
Non-aligned dairy farmers will also receive a retailer supplement, estimated to be an additional 2ppl for November.

The increase follows a 1ppl increase October. The November increase will also see the completion of the price harmonisation process for Muller's two farmer groups following a request from the MMG Farmer Board.
 
Lyndsay Chapman, Agriculture Director for Müller Milk & Ingredients commented, “With winter approaching, dairy farmers are understandably anxious to see higher returns following significant increases in the value of dairy commodities and a tightening of supply.
 
“We will continue to reflect improved returns within our business but it is important to stress that in a challenging commercial and retail environment we must be competitive in comparison to other organisations who offer their farmers different levels of milk price returns, or choose to retain  rather than pass on the extra supplements they are receiving from retailers.”

Roddy Catto, chair of the MMG farmer Board added, “We have had extensive discussions with the Müller team.  This November increase is a further positive and much needed increase for our farmers on non-aligned contracts. As a Farmer Board we pushed strongly for a higher level of price increase and will continue to do so.”

Earlier in September, protest group Farmers For Action, which launched a series of blockades and flash protests against Muller facilities around the country in August, was highly critical of commentators urging patience. FFA said in a statement, “We continue to see very slow progress in milk price increases, despite market returns continuing to rise. Some commentators have stated we should not expect processors to increase price as fast as the market due to trade deals they have agreed previously. FFA view this as being their problem not ours. Farmers should receive market returns as fast as they rise, after all they manage to pass on the downward price quickly.”