News in brief

Müller offers farmers fixed price following Lidl deal

By Jim Cornall contact

- Last updated on GMT

Müller Direct farmers will be offered the option to secure up to 50% of their milk supply at 28ppl fixed price for up to three years, to fulfill Lidl’s requirement for fresh milk. Pic: ©iStock/Tomasz Wyszołmirski
Müller Direct farmers will be offered the option to secure up to 50% of their milk supply at 28ppl fixed price for up to three years, to fulfill Lidl’s requirement for fresh milk. Pic: ©iStock/Tomasz Wyszołmirski
In the UK, Müller Milk & Ingredients has confirmed details of a new initiative it said will 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 June 1, 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 three years, to fulfill the supermarket’s requirement for fresh milk.

The company said 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 the new approach gives dairy farmers security and confidence for the future and is a good example of  innovation that benefits the whole supply chain.

Müller Direct farmers can apply to apportion milk in 10,000 liter per month lots from today (April 18) and the ‘Müller Direct Fixed Price Contract’ commences June 1.