Muller milks farmers

Mullers, the Market Drayton yogurt makers who have highlighted their use of local milk in advertising campaigns, have come in for stick in the national press.

Just as a number of major supermarkets – Morrisons, Asda, Lidl, Aldi and Iceland – have been criticised for paying less for their milk than the production cost, now Muller has revealed it will cut its standard milk price next month by 1.75p a litre to 24.15p – a move that the National Farmers' Union branded unacceptable.

A farmers' union spokesman said: " To see Muller Wiseman declaring it is following others with price cuts is a deplorable change in direction. We need to develop trust between processors and farmers."

The news follows criticism and even formal investigations into the way some companies treat their suppliers. The latest is Tesco who are being looked at by the groceries code adjudicator (GCA) although it must be said that the supermarket giant – along with Sainsbury, the Co-op, Waitrose and M&S – does pay for milk above the production cost.

Sainsbury recently made milk prices a focal point in its promotional material and said: "At Sainsbury's we support our British fresh milk farmers. Does your supermarket?"

It put the farmer cost of producing four pints of milk at around 68 pence and published the price paid by each supermarket for four pints of milk.

Rather unsurprisingly it found three supermarkets – itself, Tesco and Marks & Spencer – to be the only ones paying above the cost of production. Marks & Spencer was quoted as paying 78 pence, Tesco 73 pence and Sainsbury's 72 pence. The Co-op and Waitrose are thought to be paying similar rates.

Sainsbury said five retailers – Morrisons, Asda, Lidl, Aldi and Iceland – pay farmers less than the cost of production for their milk.

Morrisons and Asda were quoted as paying 56 pence, while Lidl, Aldi and Iceland were said to pay between 56 and 59 pence.

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