Muller rescind the 1st May 1ppl price increase but stand on until at least 1st July
Posted on: 01/05/20
Muller Direct farmers will not receive the agreed 1ppl 1st May price increase. This means it will be a stand on milk price at 25.25ppl plus 1ppl to 26.25ppl for farmers who qualify for the Muller Direct Premium and these prices will prevail until at least July 1st.
In early April when the increase was announced, the heading on our April 2nd bulletin read;
“1ppl Price Rise for Muller Direct farmers is a big surprise” and Ian commented that “It is likely to be the only milk price increase for a long time and given the market conditions outlined below short-lived”.
Consequently, it’s no surprise to Ian and most others the bizarre increase has been rescinded, especially given the volatility in both butter and cream values during April as detailed below.
However, in a surprise press release the chairman of NFUS Milk Committee, Gary Mitchell stated that he was confused and that NFUS is seeking a full explanation for the decision from Muller. Perhaps the latest AHDB report will help the NFUS dairy team understand the market dynamics and clear up their confusion. (https://ahdb.org.uk/dairy/cream-income-to-a-liquid-processor).