The Muller Direct Fixed Price Contract was part of a 3-year partnership with Lidl.
Muller has confirmed details of a deal with retailer Lidl designed to ’help British dairy farmers manage the impact of extreme farm gate milk price volatility’.
It followed a recent announcement by Lidl UK of a new partnership with Muller, which will see the dairy company become the supermarket’s main milk supplier from June 1.
Muller Direct farmers can apply to secure up to 50 per cent of their milk supply at 28ppl, fixed for up to three years.
Rob Hutchison, Muller milk supply director said: “There is 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.”
Muller 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 June 1.
NFU national dairy board chairman Michael Oakes said: “It is encouraging that since our dairy risk management conference last year a number of milk buyers and retailers have put options in place to help farmers manage volatility.
“It is clear that we will continue to see a volatile global milk price and it is important that options are made available to help farmers alleviate the impact of volatility on their business. Providing farmers with the ability to be able to fix prices for a set time and volume is a move in the right direction.
“We continue to call for an end to exclusivity in dairy contracts to give farmers the opportunity to spread their risk and manage market volatility on all their milk supply.”