Müller UK & Ireland is placing long-term supply chain resilience at the
heart of a new organic milk offering, which it has developed in partnership
with its retail partners.

As shopper demand for organic milk continues to increase, the dairy company
has created a tailored organic offering, within its existing Müller
Advantage programme, designed to drive security of supply by reinvigorating
and protecting the long-term viability of its 60 organic dairy suppliers.

Increased farming costs and fluctuating farmgate milk prices have
contributed to organic milk production falling since 2020, with some
farmers choosing to leave the sector altogether.

With sales of organic milk increasing, the dairy company recognises that
the current offering does not deliver the stability, confidence and
competitiveness required for long term security of supply.

A new Müller-led pricing model aims to address these industry-wide issues
and ensure long term UK security of supply. The model takes into account a
wide range of new factors, including fluctuating organic input costs,
succession challenges, labour costs and investment required to help reduce
on farm emissions.

In addition to the dairy company’s incentivised Müller’s Advantage
programme, it will now also develop bespoke workshops to help organic
suppliers further reduce emissions on farm.

Eligible organic producers will continue to participate in Müller’s Next
Generation and its new Fast Track programme, a groundbreaking initiative
targeted at decreasing carbon emissions by introducing real-time data
analysis on farm.

With its new approach, the dairy company is confident it can help supplying
organic farmers become less exposed to price volatility, creating the
conditions to grow and invest in their business, which in turn will provide
greater resilience within the supply chain.

The pioneering new offering has been created by Müller in collaboration
with its organic supplying farmers, Kite Consulting and Müller’s retail
partners.

Richard Collins, Head of Agriculture at Müller Milk & Ingredients said:

“The future of the British organic dairy sector is at risk. Production
has gone down over the past five years, with many hard-working farmers
either leaving the industry or switching to non-organic methods.

“And as organic demand remains strong, we have to find new solutions,
that are fully supported by our retail partners, to protect the long-term
security of supply of organic milk.

“With our innovative new offering, it will provide stability,
competitiveness and long-term confidence for our organic supplying farmers.
If we get that right, it not only builds supply chain resilience, but
creates the conditions for further investment and innovation across the
sector.”

Adam Stanbury, Müller Milk Group (MMG) board member and organic farmer
said:

“It is fantastic Müller have listened to and recognised the unique
issues facing its organic supply group.

“They were keen to work with MMG to find a sustainable solution for the
whole supply chain. We are hopeful the creation of their unique and
innovative pricing model means the challenges in the organic dairy sector
can be met.

“This will increase confidence for our organic group of farmers, allowing
them to remain in organic production and drive future investment.”