Müller Direct farmers will be offered the option to secure up to 50% of their milk supply at 28ppl fixed price for up to 3 years, to fulfil Lidl’s requirement for fresh milk.
NFU National dairy Board Chairman Michael Oakes said: “It’s 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."
Müller 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 1st June.