Muller launches enhanced organic milk pool

Rising consumer demand for organic dairy has prompted major milk processor Muller to redesign its offering for organic producers, to ensure a sustainable milk supply for the future.

Muller has launched a new pricing mechanism to pay its organic producers, taking into account fluctuating organic input costs, such as feed and labour.

The processor says it will also factor in the amount of investment needed to meet environmental targets on each farm and succession.

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Kite Consulting and Muller’s retail partners have helped to design the new offering, which will include workshops for producers to tackle on-farm emissions.

Muller is supplied by 60 organic dairy producers at present and representatives told Farmers Weekly that they were open to securing new organic farmers.

Organic producers supplying Muller are currently paid 56.75p/litre, a 14.5p/litre premium over its conventional price.

Richard Collins, head of agriculture at Muller, said:

“The future of the British organic dairy sector is at risk.

“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.”

He added that the new offering should bring some stability and confidence to producers within the sector.

Organic farmer and Muller Milk Board member, Adam Stanbury, said:

“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.”