Market Drayton-based Muller announces new support for dairy farmers
Dairy giant Muller is to boost the price paid to its farmer suppliers next month and is introducing a new type of contract guaranteeing some prices for a year.
The Market Drayton-based yoghurt and desserts manufacturer is to bump up prices by 1.31p per litre from September 1, taking the standard price paid for a litre of milk to 29p.
It comes on the back of a period of price growth for farmers, which in turn followed a long period of seriously constricted prices which forced many dairy farmers out of the industry.
At the same time as the increase, Muller is introducing a new Direct Futures Contract option which allows farmers to agree a monthly price for up to 25 per cent of their milk for 12 months in advance.
It is aimed at providing stability for dairy farmers should the sector face another serious decline in prices, and comes after calls to find ways to avoid further boom and bust cycles in the industry.
Muller 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 Muller 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.”
Other measures announced by Muller Farm Insight, a new service for dairy farmers offering data, welfare tools and benchmarking to help their businesses.
The moves are focused on about 700 of the group’s 1,800 farmer suppliers who are not part of groups aligned to major supermarket customers. A new group, called Muller Direct, is to be introduced for those farmers.
Muller said it wanted to “increase confidence and resilience” among its dairy farmer suppliers, as global dairy markets continue to be volatile and unpredictable.
It is also intended to help mitigate uncertainty around future support for dairy farmers once the UK exits the European Union, which could affect subsidies.
Last year the company announced plans to invest £100 million in its business, which includes expanding its yoghurt factory in Telford. It also has an operations in Minsterley making desserts, and its butter and yoghurt plants in Market Drayton.
