Muller to increase milk price

The main milk buyer in the north and north-east has announced plans to increase its milk price next month.

Muller, which caused controversy last year by closing the only milk processing plant in the region, will increase its standard non-aligned price by 1.5p a litre to 27.69p a litre on August 1.

The company said farmers would also benefit from a retailer supplement payment which is estimated to be 0.3p a litre for June and July.

“Against a backdrop of very healthy increases in the market value of globally traded dairy commodities we are now starting to realise improved returns which we can reflect in a higher milk price for August,” said agriculture director Rob Hutchison.

“If the market can sustain these higher values, we are confident that this will help to drive higher farm-gate milk prices in the months ahead.”

The full milk price increase will not be enjoyed by all farmers supplying the company.

Since Muller closed its Aberdeen processing plant, the bulk of producers have been forced to pay a 1.75p a litre transport levy to have their milk hauled south for processing.

This means non-aligned producers in the north and north-east will only see their milk price rise to 25.94p a litre on August 1.

We are now starting to realise improved returns which we can reflect in a higher milk price for August.

Picture: Getty. Dairy farmers supplying Muller are set to benefit from an increase in milk prices.