DAIRY FARMERS supplying Müller – who meet the conditions for the company's 'Advantage' scheme – will receive a standard milk price of 33ppl from January 1, 2022.

Thus is equivalent to a 3ppl increase for the month. Müller had previously confirmed a 2ppl increase for January, and said this week that the additional 1ppl reflected the need to address milk supply challenges, in particular the rapidly rising on farm costs of production. However, the Müller Advantage premium is not available to the aligned milk pool.

In a parallel measure, Lidl GB has told those Müller Direct farmers who opted to benefit from a three year fixed price contract for up to 50% of their milk supply, will see this fixed price temporarily increase by 4ppl to 33ppl from the same date, with that price to be be reviewed in the spring in line with the economic conditions and farm production costs at that time.

Read more: First Milk announces 34ppl January milk price

Chief Operating Officer at Müller Milk & Ingredients, Rob Hutchison, said: “As the dairy supply chain meets the challenge of unprecedented increases in costs, we will continue to do everything we can to support farmers who supply us."

“The commitment to the UK dairy industry from Lidl GB to increase the value of the fixed price contract, an important and valuable hedge against milk price market volatility also recognises the current pressures facing farmers.

“There is no doubt that the whole supply chain is working in an environment which no-one could have predicted," added Mr Hutchison. “We will of course continue to monitor and manage the issues facing our supply chain in the coming

months, to ensure that we continue to provide excellent levels of service to our customers.”