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Müller confirms details of volatility beating option for farmers

Press Release   •   Apr 18, 2018 10:11 BST

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 1st June 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 1st June. 

ller Milk & Ingredients is Britain’s largest producer of branded and private label fresh milk, cream, butter and ingredients products, with a network of dairies and depots servicing customers throughout the country.

About Lidl UK GmbH

Since establishing itself in the UK in 1994, Lidl has experienced continuous growth in Great Britain and today has over 22,000 employees, 700 stores and 12 distribution centres in England, Scotland and Wales. As part of the Schwarz retail group, Lidl is one of Europe’s leading organisations in the food retail industry. With a presence in 30 countries around the world, the supermarket, which has more than 225,000 employees globally, currently operates approximately 10,000 stores and more than 150 distribution centres in 28 countries globally. The family supermarket takes pride in providing its customers with the highest quality products at the lowest possible prices throughout Great Britain, from Kirkwall to the Isle of Wight. Social responsibility and sustainability are at the core of the company's daily operations, with the company placing a strong emphasis on its responsibility for people, society and the environment. Lidl UK is passionate about working with British producers and sources two thirds of its products from the UK, working with suppliers across the British Isles wherever possible.

The Schwarz Group (Kaufland, Lidl) has been Europe's largest food retailer since 2014 and generated a turnover of €90.2 billion in financial year 2016.

For more information about Lidl UK visit www.lidl.co.uk.