Dairy News Roundup July 2, 2015 12:00 am Muller Wiseman Price Cut Hard on the heals of Arla announcing its price cut for July, Muller Wiseman has come out and reduced its price by 1ppl from 1st August. This puts a standard litre at 23.15p. DC Liquid Sale In the last Bulletin we wrote that the sale of Dairy Crest’s liquid division to Muller would go to a ‘phase 2’ investigation by the Competition and Markets Authority unless the companies could offer ‘undertakings’ that would resolve the CMA’s concerns. Muller has now offered such an undertaking which the CMA has responded to positively. Muller is offering to ‘toll process’ a defined volume of liquid milk for a nominated purchaser in the South West / Wales. This is to allow the purchaser to compete for tenders in the South West, Wales, the South and the Midlands. Presumably the purchaser is Arla Foods, the only other big liquid milk company, which lacks dairies in the South West. Now this offer has been made there will be a period of further public consultation with a decision being made by the CMA by the end of August. This will speed-up the process as a phase 2 inquiry would have taken at least six months. If the deal is approved next month Muller have stated they aim to complete the transaction by the end of the year at the latest. GDT Auction Still Falling Any hope that commodity milk prices were stabilising have been dashed by the latest GDT auction. At the sale on the 1st July the weighted average index price fell by a further 5.9%. This results in a price of €2,276 per tonne, the lowest level seen for six years. Prices were depressed by the large amount of product up for sale – unsurprising given the volumes of milk being produced globally.
