The main milk buyer in the north and north-east has announced plans to increase its milk price next month.
Muller, which caused controversy last year when it shut the only milk processing plant in the region, will increase its standard non-aligned price by 1.5p a litre to 27.69p a litre on August 1.
The company said farmers would also benefit from a retailer supplement payment which is estimated to be 0.3p a litre for June and July.
“Against a backdrop of very healthy increases in the market value of globally traded dairy commodities we are now starting to realise improved returns which we can reflect in a higher milk price for August,” said agriculture director Rob Hutchison.
“If the market can sustain these higher values, we are confident that this will help to drive higher farmgate milk prices in the months ahead.”
The full milk price increase will not be enjoyed by all farmers supplying the company.
Since Muller closed its Aberdeen processing plant, the bulk of producers have been forced to pay a 1.75p a litre transport levy to have their milk hauled south for processing.
This means that non-aligned producers in the north and north-east will only see their milk price rise to 25.94p a litre on August 1, once the transport levy has been deducted.
