Dairy farmers supplying First Milk and Muller will enjoy an increase to the price they are paid for their milk on July 1.
Glasgow-headquartered farmers’ co-operative, First Milk, is increasing its milk manufacturing standard litre price by 0.57p to 30.5p per litre on July 1.
In a statement, the co-op said the price increase was “possible due to improvements in market returns, as well as the benefits of First Milk’s continued capital investment in driving efficiency and productivity at its processing sites”.
Meanwhile, Muller has announced a 0.75p increase to 29p per litre for farmers who meet the conditions of its Muller Advantage programme.
The programme, which launched in December, requires farmers to manage and reduce antibiotic usage, sustainably source animal feed, reduce energy and water use, and enhance biodiversity.
Muller Milk & Ingredients chief operating officer, Rob Hutchison, said: “Markets remain stable at present enabling us to make this increase from July. We will continue to monitor supply and demand in the coming months.”
Supermarket partnership
Muller has also teamed up with supermarket chain Lidl to offer farmers on its Muller Direct contract – those not on an aligned contract – the chance to fix the price of up to 50% of their milk for three years.
The dairy says the new fixed price offering with Lidl, which follows a similar initiative in the past three years, will give farmers the option to secure up to 50% of their milk supply at a fixed price of 29p per litre for three years. The rest of the milk they produce will attract the company’s market-related direct price.
Mr Hutchison said: “We are delighted to extend our long term partnership with Lidl GB. Our fixed price option will help farmers by giving them stability and confidence in their future operations.”
Lidl GB’s chief commercial officer, Ryan McDonnell, said the partnership would “create security of supply for our farmers and bring the best of British to our customers”.