Dairy farmers supplying Muller will see their milk price increase by an additional 1.25p per litre (ppl) from July 1st, following a 0.75ppl increase from today for milk supplied in June.

The move will take the standard litre price paid to 700 Muller Direct producers to 28ppl, reflecting a strengthening in returns from wholesale cream and butter markets.

According to the latest available figures, GB milk production was still rising on 19 May. After a slow start due to the poor early spring weather, milk production was running more than 2 per cent below last year for much of April. However by 19 May overall volumes were just 0.2 per cent below the same time last year.

Over the last four years peak milk production day in GB has been somewhere between 2 and 11 May. A peak day past the middle of May is unusual, but certainly not unique. In 2012 the highest individual day was recorded on 2 June, after a particularly wet April that year.

Ron Hutchison, Muller's Milk Supply Director said: "Market returns are continuing to improve after a challenging period, and we are pleased to reflect this in higher milk prices."

Referring to the Muller Fixed Price Contract and the Futures Contract option Mr. Hutchison said: "While global market volatility will remain a constant factor going forward, Muller Direct farmers are embracing the range of tools we are offering which are designed to help them manage milk price volatility."

Market round-up

C&D Auction Marts Ltd sold 4 prime heifers in Dumfries on Wednesday to a top of 230p per kg and an average of 226p, while a prime bullock fetched 214p.

In the rough ring 26 beef cows sold to 173p and averaged 146p, while 25 dairy cows peaked at 144p and levelled at 127p. Six bulls sold to 166p and averaged 133p.

The firm also sold 218 prime hoggs to a top of £110 per head and 225p per kg to average 180p (-49p on the week), while 21 prime lambs peaked at £115 and 278p to level at 268p (+18p).

A small show of 55 cast sheep saw heavy ewes sell to £166 for a Texel and average £92, while light/export-type ewes peaked at £76.50 for both a Cheviot and a Blackface to level at £60.

Messrs Craig Wilson Ltd sold 75 prime hoggs in Newton Stewart on Wednesday to a top of £100 and 226.2p to average 170p (-20.8p), while 167 prime lambs peaked at £120 and 292.5p to level at 254.4p (+7.8p).

There were also 45 heavy cast ewes forward that sold to £117 for Texels and averaged £84.42, while 77 light ewes peaked at £68.50 for Blackfaces and levelled at £56.77.