Muller Wiseman New Contract June 27, 2013 12:00 am We wrote on 3rd June about about a new milk contract being offered by Muller Wisman. The group has now announced that the price for its formula-based contract will start at 32.27ppl for the period from 1st July to 30th September. The price will be recalculated quarterly using a formula based on Actual Milk Price Equivalent (AMPE), Cheese Milk Equivalent (CMVE) and a basket of other processors’ prices. Members of Muller Wiseman Dairies had until 21st June to apply to sell a minimum of 10% of their milk volume under this formula option; Muller Wiseman is offering to purchase 110m litres. It remains to be seen how many members take up the offer and whether it is over or under subscribed. The starting price is very attractive with only M&S and Tesco prices higher, but producers need to remember the opening price has been calculated when AMPE and MCVE are strong. This type of formula pricing is likely to expose dairy farmers to more volatility. Muller Wiseman has released information to help producers compare the standard milk price against the new formula one. In the meantime the Group has announced a 45 day consultation with 156 of its staff mainly based at its Keith and Whitburn plants, which look likely to be closed.
