Muller Wiseman ups standard milk price to 33.6ppl from April
MULLER Wiseman has announced a standard litre price of 33.6ppl from April.
The move follows recent bullish statements by Muller UK and Ireland Group chief executive Ronald Kers, exclusively in Farmers Guardian, in which he stressed his desire to be the number one UK milk processor. Part of the strategy to achieving that goal, he said, was about competing on price and offering a ‘clean’ milk price.
The move benefits all Müller Wiseman Milk Group (MWMG) members who receive the company’s standard price and comes into effect from April 1, 2014.
The new milk price replaces the company’s current standard litre price of 32.5ppl.
In the 2013/14 milk year, new and existing producers also had the opportunity to earn up to an additional 1ppl with payment for existing producers dependent on increasing supply over the previous year’s production.
From April, the company is closing this scheme so that it can ensure that all new and current MWMG non retailer aligned producers benefit from a higher standard milk price.
In addition, the company has stressed larger producers can also achieve volume bonuses of up to 2.2ppl in addition to the standard litre price.
During his FG interview, Mr Kers said the firm offered a transparent milk price which had no ‘Ryanair factors’. By this he was suggesting other processors were, in his view, offering a headline price which did not reflect the actual price farmers achieved because of deductions for elements such as transport of butterfat reconciliation.
Martin Armstrong, head of group milk supply for the Müller UK and Ireland Group, said: “While our 2013 recruitment and expansion incentive for new and existing producers was innovative and served its purpose very well, we want to continue to retain and attract new members in 2014 by further enhancing the simplicity of our proposition.
“We are pleased to build on our reputation for providing a straightforward correlation between the headline price and cash returns each month. “
Muller is looking to recruit an additional 150m litres of milk this year on top of the 200m it recruited last year.