Müller Milk & Ingredients has confirmed details of a new initiative designed to help British dairy farmers manage the impact of extreme farm gate milk price volatility.
The move follows recent confirmation by Lidl UK of a new partnership with Müller Milk & Ingredients, which will see the dairy company become the supermarket’s main milk supplier from 1stJune 2018.
Müller Direct farmers will be offered the option to secure up to 50% of their milk supply at 28ppl fixed price for up to 3 years, to fulfil the supermarket’s requirement for fresh milk.
By securing a fixed price for a portion of their milk supply, farmers can substantially reduce their exposure to market volatility which has seen farm gate milk prices suffer dramatic swings in the past few years.
Rob Hutchison, Müller Milk Supply Director said:
“There’s no doubt that the highs and lows of market volatility are challenging to deal with, creating uncertainty and inability to plan ahead.
“This new approach gives dairy farmers security and confidence for the future and is a very good example of innovation which benefits the whole supply chain.”
Müller Direct farmers can apply to apportion milk in 10,000 litre per month lots from today and the ‘Müller Direct Fixed Price Contract’ commences on 1stJune.