Müller UK & Ireland has launched a new organic milk offering, developed in close partnership with its retail customers, aiming to significantly enhance long-term supply chain resilience for the increasingly popular category.
The initiative comes as the dairy giant addresses a five-year decline in organic milk production across the UK, despite strong and growing shopper demand.
The new offering, integrated into Müller's existing Advantage programme, is specifically designed to reinvigorate and safeguard the long-term viability of its 60 organic dairy suppliers.
This strategic move acknowledges that current market conditions, marked by increased farming costs and fluctuating farmgate milk prices, have led some organic farmers to exit the sector or switch to conventional methods.
"The future of the British organic dairy sector is at risk," said Richard Collins, head of agriculture at Müller Milk & Ingredients. "Production has gone down over the past five years, with many hard-working farmers either leaving the industry or switching to non-organic methods. And as organic demand remains strong, we have to find new solutions, that are fully supported by our retail partners, to protect the long-term security of supply of organic milk."
At the heart of the new programme is a Müller-led pricing model that aims to counteract industry-wide challenges. This innovative model factors in a comprehensive range of new considerations, including volatile organic input costs, succession challenges, labour expenses, and the investment required to reduce on-farm emissions.
In addition to financial incentives, Müller will also roll out bespoke workshops to help its organic suppliers further reduce their on-farm emissions. Eligible organic producers will also continue to benefit from Müller’s Next Generation and the new Fast Track programme, an initiative focused on decreasing carbon emissions through real-time data analysis on farms.
Müller is confident that this fresh approach will insulate supplying organic farmers from price volatility, fostering an environment where they can grow and invest in their businesses. This, in turn, is expected to cultivate greater resilience across the entire organic milk supply chain.
The dairy company added that the development of this offering was a collaborative effort, involving Müller's organic supplying farmers, Kite Consulting, and its retail partners.
Adam Stanbury, a Müller Milk Group (MMG) board member and organic farmer, welcomed the news, stating, "It is fantastic Müller have listened to and recognised the unique issues facing its organic supply group. They were keen to work with MMG to find a sustainable solution for the whole supply chain. We are hopeful the creation of their unique and innovative pricing model means the challenges in the organic dairy sector can be met. This will increase confidence for our organic group of farmers, allowing them to remain in organic production and drive future investment."
