The company, which own Wiseman Dairies, recently took over the dairies operations of Dairy Crest.
Muller says that it aims to add value to farm gate milk by making a range of dairy products including fresh milk, cream, butter, flavoured milk, yoghurt, chilled desserts and powder. But it says it cannot fully protect dairy farmers from the realities of the market.
David said that milk prices were in a ‘mess’ and this most recent cut to prices could only worsen that.
Arla is the latest milk buyer to drop its milk price – members will see their price drop by 0.75ppl from February 1. This comes on the back of increasing UK and EU milk supplies and a stagnant, if not depressed, global market.
Further north, NFU Scotland believes that politicians across all parliaments, milk buyers, processors, and retailers must be in no doubt that the vast majority of dairy farmers in Scotland are faced with a huge task to maintain their businesses through the current crisis.
Dairy in Scotland is a vital part of the rural economy and has huge potential, but for the primary sector, the current crisis cannot be overstated.
NFU Scotland’s Policy Manager George Jamieson said: “It is critical and undeniable that all parts of the supply chain must better share the risks and the rewards of the volatile market we now face. Dairy producers are currently carrying too much of the burden and have not benefited enough from the opportunities.
“Analysts remain convinced that the future is positive for the dairy sector, but for this to be a reality then we must see tangible evidence that processors, retailers and all end users, governments and the consumer can all work collaboratively to overcome the massive challenges of peaks and troughs of volatility and competition. Scotland wants to be a part of dairying’s future, but all parties cannot take dairy farmers for granted.
Speaking at at the Semex conference in Glasgow earlier in the month, Dr David Dobbin, Chairman of Dairy UK, said the industry is having to endure extremely difficult conditions as a result of oversupply of milk globally, intense price competition in falling markets, lower returns and deflation.
He said: “We know what the problems are and there is no shortage of them. We understand that global milk supply is still growing too fast and is outstripping demand and we are not immune to significant factors such as the slowdown in the Chinese economy and the Russian ban on importing products.
“Our options are to wait it out, protest, face new legislation or we can up our game and take charge of our own destiny. Our industry’s problems are down to global oversupply we need to develop the demand for British dairy products and invest in promotion both at home and in target export markets.”
“Speaking not only as the chairman of an industry body but also the chief executive of a dairy business, whether you are a farmer or processor we all share the objective of economic sustainability and we need to build an industry where processors are profitable and able to pay a competitive and sustainable milk price to our farmers.
Source: FarmingUK