Muller has confirmed that it will reduce its standard milk price by 0.85p per litre (ppl) from May 1st due to the continuing extreme market volatility couple with high levels of global milk supply.
The move takes the price paid to former Dairy Crest Direct members - now Muller Direct Milk suppliers - down to 18.45ppl. That will be the first time since 2007 that they have been paid less than 19ppl and represents a 43 per cent cut from the market peak two years ago.
Meanwhile the price cut takes Muller Milk Group members (ex Muller Wiseman Milk Group) down to 19.15ppl and Muller Direct Milk Formula (latest forecast) down to 24.73ppl.
Lyndsay Chapman, Agricultural Director of Muller Milk & Ingredients said: "Market returns continue to be severely depressed creating an increasingly difficult trading environment as we approach the peak period of milk production. As a result we unfortunately have to reflect this through a further reduction in our milk prices for May."
NFU Scotland's Milk policy Manager, George Jamieson, said: "This latest cut by Muller means that more than half of Scotland's hard-pressed dairy farmers are entering the spring on a milk price that is below 20ppl - a staggeringly poor return for the work and effort that goes into producing fresh milk and dairy produce, further undermining confidence in the future of the sector in Scotland."
While Muller do not manufacture cheese, Mr Jamieson went on to highlight the role retailers could play saying: "With wholesale prices for mild cheese less than £2000/tonne, but that same mild cheddar on shop shelves at a price equivalent of £5800/tonne, the mark up being made by retailers must be addressed by either giving the public a better deal on their cheese, or better sharing the margins with those producing the milk."
Market round-up
Wallets Marts sold 802 prime hoggs in Castle Douglas on Tuesday to a top of £96 per head and 243.2p per kg to average 181.7p.
Messrs Craig Wilson Ltd sold 13 prime heifers at Ayr on Tuesday to a top of £1187.20 per head and 224p per kg to average £1088.41 and 205.5p, while 3 prime bullocks peaked at £1141.38 and 217p to level at £1116.61 and 204.3p.
In the rough ring 23 beef cows averaged 129.6p and 122 dairy cattle levelled at 87.3p. Eight bulls averaged 118.8p.
A small show of 7 dairy cattle sold to £1480 for a Holstein Heifer and averaged £1049.
The firm went on to sell 895 prime hoggs in Newton Stewart yesterday to a top of £97.50 and 211p to average 181.4p.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here