Muller Wiseman Offers Formula Milk Price of 37.27pence05 June 2013
UK - Müller Wiseman Dairies has revealed that its new formula price of 32.27ppl will return from July to September available on up to a total 110 million litres of milk.
Prices for Muller Wiseman Group members (MWMG) will be recalculated quarterly using publicly available benchmarks. These are Actual Milk Price Equivalent, Milk for Cheese Equivalent and a basket of competitor milk prices.
Pete Nicholson, Agricultural Affairs Manager at Müller Wiseman said that this is a ‘strong’ price reflecting commodity markets.
“We think there will be significant interest in this option but we want to stress that the Formula Price will expose dairy farmers to more of the volatility which comes with a direct link with global dairy commodities.
“For example, the average Müller Wiseman Dairies standard litre price last year at 28.27ppl was some 1.69ppl ahead of what the Müller Wiseman Formula Price would have offered had it been available at the time,” added Mr Nicholson. ““But the first quarter formula milk price from July to September is some 0.77ppl ahead of the current Müller Wiseman Standard Price.”
MWMG farmers can opt to sell a minimum of 10 per cent of their milk volume, based on 2012 output figures, under the new option upon application.
In order to inform producers about the selling options available, guidelines and a tender document has been produced.
TheCattleSite News Desk