Two UK milk processors have announced milk price cuts for June citing strong supplies and weak dairy markets.
Müller has announced a reduction of 0.49 ppl to its standard milk price from 1 June 2016 reflecting the continuing impact of depressed markets resulting from strong supply and high stock levels.
The average standard liquid milk price for Müller Milk & Ingredients is 19.11 ppl* with an additional supplementary payment to be confirmed (currently 2.05ppl).
Lyndsay Chapman, Agriculture Director of Müller Milk and Ingredients said markets continue to be severely depressed due to the balance of supply and demand.
"The ongoing impact of this environment is increasingly challenging for all of us within the dairy sector.
“We recognise that any further price reduction is difficult news for our farmers but we remain committed to paying a competitive and transparent milk price," she said.
Meanwhile, Dairy Crest has announced its Davidstow milk price will reduce by 1p/L from June 1, 2016.
This means the Davidstow core milk price will be 21.72p/L from June 1, 2016.
Ruth Askew, Dairy Crest’s Head of Procurement, said “Dairy Crest is committed to paying a fair milk price. In addition, we aim to provide certainty and stability for our farmers. For example, the recent milk price floor which we put in place during peak production through to the end of May.
“The performance of our cheese brands, underpinned by a world class supply chain, enables us to pay a premium for the high quality milk our farmers supply us. However, the dairy sector remains under extreme pressure. As a result, we must act responsibly to ensure that our cheese business remains competitive.
"Unfortunately this means that we must now adjust the milk price. Our Davidstow price is still one of the most competitive manufacturing contracts in the UK, particularly given the significant volumes of milk we purchase," she said.