Dairy farmers supplying Müller who meet the conditions for Müller Advantage1 will receive a standard milk price of 33.00ppl2 from 1 January 2022, a 3.00ppl increase.
Müller had already confirmed a 2.00ppl increase from 1 January in November and the additional 1.00ppl reflects the need to continue to address challenges to supply of milk from dairy farmers, which include rapidly rising on farm production costs.
Fixed price increase
In a further measure, Lidl GB has ensured that Müller Direct farmers who opted to benefit from a three year fixed price contract for up to 50% of their milk supply, will see this fixed price temporarily increase by 4.00ppl to 33.00ppl from the same date. The price will be reviewed in the spring and considered in line with the economic conditions and farm production costs at that time.
The pioneering Müller Fixed Price Contract Option is designed to help dairy farmers to manage milk price volatility and gain long term financial certainty and was relaunched by Lidl GB and Müller Milk & Ingredients in May 2021 at 29ppl.
Rob Hutchison, chief operating officer at Müller Milk & Ingredients said: “As the dairy supply chain meets the challenge of unprecedented increases in costs, we will continue to do everything we can to support farmers who supply us.
“The commitment to the UK dairy industry from Lidl GB to increase the value of the fixed price contract, an important and valuable hedge against milk price market volatility also recognises the current pressures facing farmers.
“There is no doubt that the whole supply chain is working in an environment which no-one could have predicted.
“We will of course continue to monitor and manage the issues facing our supply chain in the coming months, to ensure that we continue to provide excellent levels of service to our customers.”
Martin Kottbauer, chief commercial officer at Lidl GB said: “We are proud of the strong, long-standing relationships we have with our dairy suppliers and have always looked to support them against the challenges posed by milk price volatility. It was why in May we agreed a landmark new three-year fixed milk price for with our farmers to help them better plan for the future and why, against the backdrop of exceptional inflationary pressures facing the industry, we are continuing the support them by increasing our fixed rate from the start of next year.”