Muller is to increase milk prices again from November, bringing its standard non-aligned milk price by 0.5p per litre to 30.5p per litre.
The dairy giant said it wants to "increase confidence and resilience" amongst its 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.
Muller agriculture director Rob Hutchison said: “Global markets for dairy commodities like butter and cream are easing following the recent and unprecedented surge, with supply increasing and demand softening.
“However, we remain committed to offering a competitive milk price at each stage in the global dairy market cycle and are investing heavily to add value to the milk we buy.
“We are also working with farmer suppliers to ensure that production is more closely aligned with the requirements of our customers, and to introduce and encourage the use of tools which are designed to help manage milk price volatility.”
Muller has also confirmed that 130 farmers will participate in its new Muller Direct Futures Contract.
That allows dairy farmers to fix a monthly price for up to quarter of milk production for up to 12 months ahead, offering higher levels of certainty over future milk price returns.
Earlier this month it was revealed that the company is to invest £100 million to grow its range of yoghurts and desserts using British dairy.
