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The company has given dairy farmer suppliers a month’s notice that its milk price will reduce by 1.0 ppl to 23.15 ppl from August 1, 2015.

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

“We have worked to maintain a stable milk price to the farmers who supply us throughout the peak milk production period but we must now make this adjustment.

“All around the world, the imbalance between supply of milk from farms and demand for dairy products is weighing heavily on milk prices. 

“We cannot buck this market, but we will continue to invest to increase the range of added value dairy products which we supply. 

“Our commitment is to continue to offer one of the best non-aligned milk prices available across the UK.”

Philip Rowney, Chairman of the Müller Wiseman Milk Group (MWMG) which represents dairy farmers who supply the company said: 

“Members of the MWMG have already had to accept significant reductions in their milk price and this news will not be welcomed. It is a reality that the off farm production is far higher than last year and this is affecting the market.

“We will continue to work with the Müller management team to maintain as much stability as possible during what is an extremely volatile and damaging period for the British dairy farming industry.”