Dairy giant Muller has confirmed that its milk price will remain at 27.5p for a standard litre for the month of February.

It comes a month after the firm announced it would cut its January milk price by 1p/L.

It means that farmers who satisfy the conditions for the Muller Direct Premium 2019 will receive an extra 0.5p/L (28p/L) on their qualifying production.

Farmers who opted to sign up to the Muller Fixed Price contract introduced earlier this year will also see returns for milk supplied to the company maintained at 28p/L.

More than a third of the 700 Muller Direct farmers (those not already in retailer aligned groups) committed up to half of their milk supply to the fixed price contract option. It means they will continue to receive 28p/L regardless of market conditions.

The move is one of a number of measures introduced by Muller to provide stability in a sector which continues to experience high levels of market volatility and unpredictability.

Rob Hutchison, milk supply director said: “In the current environment, characterised by supply and demand changes which are affecting the value of commodities like butter and cream, we are pleased to be able to keep our standard litre milk price unchanged for the month of February.

“In markets which remain hard to predict, the Muller Fixed Price Contract is showing its value. Farmers who opted to hedge a portion of their milk supply against this contact option know that they have significant protection from this volatility.”