THERE IS good news for Müller producers, with the company following its 2.5p per litre January milk price increase with a further 1.25ppl to apply from February 1, the fifth consecutive price increase for the company's non aligned suppliers.

Those non aligned farmers are also to benefit from an additional retail supplement estimated at 0.82ppl for February. When added to the standard litre price of 26.69ppl, this produces an actual price for February milk of 27.51ppl.

Müller Milk and Ingredients agriculture director Lyndsay Chapman said: “This latest increase again demonstrates our commitment to paying a competitive milk price to our farmers. Our business model enables us to deliver a more stable milk price profile and together with our confirmed investment programme for the future, is helping to build confidence at farm level.

“We are concluding what has been a very detailed process to review and finalise our new contract proposals, having taken on board the feedback from our farmers.," he added. "We now expect to issue contract documents in February, for sign up to the new terms from the new milk year.

“We have also been working on our new representative structure with the MMG farmer board with our immediate focus being the election of the farmer forum."

Chairman of the interim Müller Milk Group board, Roddy Catto said: “This latest milk price increase will be welcome news for farmers supplying Müller.

“The board will continue to work with the company to ensure the milk price reflects the market conditions and as dairy farmers we look forward to a more prosperous 2017."