MULLER UK and Ireland Group has confirmed that it is to slash the price it pays non-aligned members of the Muller Wiseman Milk Group (MWMG) for a standard litre of milk by 1.8 pence per litre (ppl) to 29ppl from October 1.
The group cites the sustained decline in revenues generated from sales of butter and cream as the reason for the price cut. Industry figures published this week by DairyCo highlight a £1,000 per tonne year-on-year reduction (27 per cent) in the value of butter and a 30 per cent decline in the value of cream resulting from weakness in dairy commodities, exacerbated by substantially higher levels of milk production by dairy farmers around the world.
Earlier this week, Arla Foods' chief executive Peder Tuborgh warned that the milk market is looking at an 18 to 24 month period of unpredictability and consequently prices are under severe strain. Speaking as the European co-operative announced its half-year results, Mr Tuborgh said: "The increased milk volumes that we expected to see after the abolition of the milk quota system at the beginning of 2015, are already coming through, not just for Arla farmers but for those across the EU who are taking the opportunity to grow their business."
Market round-up
Messrs Craig Wilson Ltd sold 165 store heifers at Ayr on Thursday to a top of £1,205 per head and 249.5p per kg to average £891.85 and 204.7p, while 257 store, beef-bred bullocks peaked at £1,215 and 256.1p to level at £974.13 and 214.2p.
Seventy-two store, B&W bullocks sold to £925 and 166.7p to average £752.92 and 150.8p. The Cumberland and Dumfriesshire Farmers Mart sold 4,917 prime lambs in Longtown on Thursday to a top of £97 per head and 217p per kg to average 169p (-5p on the week). A larger show of 6,250 cast sheep saw heavy ewes sell to £140 for Texels and average £77.45 (+£2.89), while light ewes peaked at £84 for Lleyns and levelled at £43.06 (+£1.70). Rams sold to £162 for a Charollais and averaged £99.88 (+£3.77).
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