Muller has served 12 months’ notice on 34 milk producers in England, Wales and Scotland.
“They have been selected for a variety of reasons, including locations and volumes produced which make continued collection financially unsustainable, or not meeting the quality or high farm standards that our customers increasingly require,” said a statement form the processor.
“On the latter point, we have been incentivising farmers to address a range of issues that are important to consumers and customers through programmes like Müller Advantage.
“We have been a long-term supporter of higher standards within our industry and have incentivised participation in programmes to encourage herd health for some time.
“We fully appreciate that this will be extremely unwelcome news, and our farm supply team will work with those affected.”
In late 2019, following Müller Milk & Ingredients’ review of its Scottish operations, 14 Aberdeenshire dairy farmers were given one year’s notice that their supply contracts would be terminated.
These producers were also located in areas that presented heightened or complex logistical transport challenges for Müller, the company said at the time.
The firm had also announced in September that year the closure of its Aberdeen distribution centre as part of its 12-month cost-cutting programme, Project Darwin, which aimed to find £100m of savings in the business to address profitability issues.