Muller Wiseman lorry © Muller Wiseman© Muller Wiseman

Muller producers should expect the best contracts with competitive pricing structures, according to its vision for the dairy arm of its business.

The dairy giant is investing £100m of extra funds in the UK over the next 18 months to facilitate £700m of growth in the sector by 2020.

Dairy processors have faced widespread criticism in recent weeks as farmgate milk prices fail to keep up with soaring commodities and spot milk prices.

See also: Strong dairy prices failing to reach the farmgate

Spot milk currently stands at 37p/litre and is expected to hit 40p/litre by the end of the month, whereas the value of cream has doubled since May and is worth 9p/litre to processors, the highest price since December 2013.

The investment will look to continue recent farmgate price increases and aim to end the boom and bust cycle that has blighted the dairy industry in recent decades.

Decreasing dairy imports

The move also aims to reverse the 2% annual value decline of the fresh milk, cream and milk drinks market and cut UK dairy imports by increasing domestic consumer demand through Muller’s range of added value milk products.

This in turn should stimulate consumption of UK dairy products and lead to an increase in domestic milk production, said the firm.

The Muller Milk Group represents around 800 milk producers, with another 650 belonging to the Direct Milk DPO, which was bought by Muller in December.