The German company has confirmed a £0.0131 per litre increase in its farm-gate milk price with effect from 1 September, taking its standard litre price to £0.29 per litre.
It will also introduce the Müller Direct Futures Contract option, giving dairy farmers the opportunity to agree a monthly price for up to 25% of their milk volume, for 12 months ahead.
The aim of the initiative is to increase confidence and resilience among Müller’s dairy farmer suppliers against a backdrop of volatile and unpredictable global dairy markets, and uncertainty surrounding future support for farmers following the UK’s departure from the EU.
Müller has already confirmed £100 million of investment in its UK network of dairies so that it can build an additional £700 million worth of sales of dairy products made with milk from British farmers by 2020.
Müller agriculture director Rob Hutchison said: “There is a lot of uncertainty out there but we are optimistic. Britain remains one of the best places in the world to produce milk and Müller is investing heavily to ensure that consumers will be able to buy more and more dairy products made in Britain with milk from British farmers.
“We want to work with farmers to realise our shared ambitions as the basis of a progressive industry with the security and confidence to invest. The steps we are outlining today are early measures which signal our intent.”
Earlier this year, Müller Milk & Ingredients announced it would invest £60 million in restructuring its network of fresh milk and ingredients dairies in Britain, creating up to 180 jobs.
Müller UK & Ireland is wholly owned by the Unternehmensgruppe Theo Müller. It employs around 12,000 people.
Source: FoodBev
Link: http://www.foodbev.com/news/muller-pledges-support-uk-dairy-farmers-new-initiative/