Budget supermarket firm Lidl has announced a long-term partnership with Muller which will see them provide liquid milk to the majority of its UK stores.

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Starting from June 1, the dairy giant will supply the UK's seventh-biggest grocer in an "innovative partnership" with Muller Direct farmers.

Muller, which has a base in Market Drayton, said locking a portion of farmers' milk supply at a fixed price will "significantly lower" exposure to milk price volatility.

"We are confident that this move will be welcomed," Andrew McInnes, managing director of Muller Milk and Ingredients said:

"This long-term strategic partnership has benefits for every part of the dairy supply chain, and will provide Lidl with a unique offering for its customers.

"It allows us to work closely with Lidl to drive innovation and growth in the milk and butter categories, leveraging the growing capabilities we have within our dairies.

"We are delighted that Muller Direct farmers will benefit from this innovative partnership."

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Lidl UK's commercial director Ryan McDonnell said sustainability is "at the heart of everything" the retailer does.

He said: "By supporting growth in the British dairy farming sector, we're taking another crucial step in fulfilling that goal."