Dairy farmers supplying Muller will have the option to secure up to 50 percent of their milk supply at a 29p per litre fixed price for three years.
Muller Milk & Ingredients and Lidl GB have confirmed details of a new fixed price offer available to Muller Direct farmers from 1 July 2021.
Following the completion of its first three-year fixed price contract, the new long term initiative will continue to see Muller supply milk to the majority of Lidl’s British stores.
According to both companies, the initiative is designed to help dairy farmers in Britain manage price volatility and gain long term financial certainty.
From July 1 2021, Müller Direct farmers will have the option to secure up to 50% of their milk supply at a 29ppl fixed price, for three years.
The remainder of the volume they produce will attract the market related Müller Direct milk price.
Rob Hutchison, chief operating officer at Muller said: “We are delighted to extend our long term partnership with Lidl GB.
"Our fixed price option will help farmers by giving them stability and confidence in their future operations.”
Ryan McDonnell, chief commercial officer at Lidl GB, said the long-term partnership would 'create security of supply for our farmers'.
"Through this initiative, we are proud to support the next generation of farmers to tackle some of the biggest challenges in the industry today, while providing the stability needed for investment and future growth.”
In the UK, Muller manufactures a wide range of branded and private label dairy products made with milk from 1,500 farmers in Britain.
Muller Direct farmers are those farmers who supply conventional or organic milk directly to the processor, it excludes farmers who are in an Aligned Milk Pool.