Müller is to increase its farm gate milk price by an average of one pence per litre from 1st October.
“We are hopeful that dairy commodities markets have turned a corner,” commented Lyndsay Chapman, Müller’s Agriculture Director.
“Cream and butter values have shown improvements that are now starting to be realised in our business, although the latter is taking longer to recover due to the volumes of butter in storage. Better returns will lead to higher farm gate milk prices, and we are optimistic in this respect.”
While accepting that prices are still far from a level that is sustainable for farmers, Roddy Catto, Chairman of the Müller Milk Group farmer Board, said: “This is an important first step and acknowledgement that the markets are looking more positive.
“This has been an extremely painful and challenging period for Müller suppliers and we now hope to see a sustained recovery.”