Müller will add a further 2.5ppl to the milk price paid to its farmer suppliers from January.

With this latest increase, January farm-gate prices are set to be 7ppl higher than they were on 1st October. The actual price paid to Müller’s farmers on non-aligned contracts for January is expected to be 26.54ppl (based on a standard price of 25.44ppl plus a retailer supplement , which Muller estimates will be 1.1ppl).

Lyndsay Chapman, Agriculture Director at Müller Milk & Ingredients, commented on Wednesday, “We are delivering on our commitment to offer a competitive and stable milk price throughout the market cycle.”

Müller is also concluding a country wide series of 16 meetings with farmer suppliers to gain feedback on future milk contract and farmer representation proposals, following its acquisition of Dairy Crest’s dairy operations in winter 2015 (On Wednesday, Dairy Crest announced a 2ppl price rise for is suppliers).

“Our meetings have provided an excellent opportunity for us to engage with over 1,000 Müller farmers. I would like to thank them for taking part in the debate around our proposed future milk contract and farmer representation,” Lyndsay Chapman said. “We are bringing together two milk supply groups, each used to different representational models, whilst moving to a single milk contract which aims to better align the supply of milk with our demand in the future.”

“Going forward we want to keep as much value as possible within our own farmer/processor supply chain by developing a closer working relationship with farmers, and moving away from current industry thinking which tends to be short term and reactive.”

Chapman said, “We will now take time to review this feedback and will therefore put back the introduction of our new contract offer. We expect to send our farmers the final contract documents in January, with the option to sign up from February.

“We are however keen to progress our new representative structure as soon as possible, with the immediate focus being the election of the new MMG Farmer Forum representatives. We have been encouraged by the number of farmers who have expressed an interest in standing and will send out nomination forms shortly”.