The agreement will see Müller supply fresh milk to the majority of Lidl UK’s stores, creating a security of supply for British dairy farmers across the country.
NFU national dairy board chairman Michael Oakes (above) said: “On the face of it this looks like a substantial announcement by Lidl and Muller as it’s the first time a milk buyer and retailer have brought in a long term fixed price option.
"However, we need to see more detail to be able to comment further as to what this actually means as so far there is no data on the actual fixed price or fixed term.
"The NFU has been urging milk buyers and their customers to look at ways of helping farmers manage milk price volatility, as not many farmers want to ride the extreme rollercoaster that we have been on in recent years. More price stability is good for farmers, milk buyers and ultimately consumers.
“We will be meeting with Lidl and Müller in the near future to discuss this new partnership and what it means for suppliers going forward.”
Lidl UK’s Commercial Director, Ryan McDonnell, said: “We’re pleased to announce a long term partnership with Müller, which will see them provide liquid milk to the majority of our UK stores.”
“Our ambition as a business is to put sustainability firmly at the heart of everything we do, and by supporting growth in the British dairy farming sector, we’re taking another crucial step in fulfilling that goal.”
Andrew McInnes, Managing Director of Müller Milk & 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.”
In March 2017, Lidl signed the NFU’s ‘Back British Farming Charter’, further cementing its commitment to the British farming industry.