MWMG members have been given a month’s notice of the change, in compliance with the Voluntary Code.
The reduction of 1.8ppl reflects a sustained decline in revenues generated from sales of butter and cream, commodities that are traded in global markets.
Industry figures published this week by DairyCo highlight a £1,000 per tonne year-on-year reduction (27%) in the value of butter and a 30% decline in the value of cream resulting from continuing weakness in demand for dairy commodities, exacerbated by substantially higher levels of milk production by dairy farmers around the world.
“We will continue to invest heavily to add value to farm-gate milk, but we are not immune to the severity of the decline in the value of these globally traded commodities,” said Martin Armstrong, head of group milk supply for Müller UK & Ireland Group. “Realisations from these products are now substantially lower and after a period of record milk prices, we have no option other than to reflect this in the farm gate milk price we offer.
“Despite the reduction, we believe that the price and proposition we offer non-aligned dairy farmers will continue to be one of the best available in the UK. Our standard price is ‘clean’ and not eroded by deductions for balancing, haulage, capital or membership levies.”
Source: Müller UK & Ireland Group
© FoodBev Media Ltd 2024