Dairy producers served notice by Muller over milk volumes

Major milk processor Muller has warned a number of its smaller UK dairy farmers they will be dropped unless they increase milk volumes.

Muller has confirmed to Farmers Weekly that it has served notice to 26 farms across England and Wales.

This announcement was made at a challenging time for the dairy sector, with farmgate milk prices remaining below the cost of production for a significant number of farmers.

Poor margins combined with high interest rates make it exceptionally hard for producers to expand and increase volumes.

See also: Milk prices still below production costs for many producers

A spokesman for Muller Milk & Ingredients said: “We have identified a very small number of supplying farms who, when compared with our other suppliers, are not continually meeting our high standards of sustainability and welfare, or provide us with low volumes of milk.

“It is important to emphasise that discussions were held with affected farms in advance and, where notices have been served, these can be rescinded if agreed by all parties.

“We are providing a full 12-month notice period and will support throughout this period of transition.” 

Herd dispersal

One Derbyshire farmer told BBC’s Farming Today programme that he was having to sell his dairy herd as a result.

The farmer was told unless the farm almost doubled its milk production that its contract with the processor would end next year.

New legislation to create fairer and more transparent contracts for farmers with processors were introduced on all new milk contracts earlier this month.

The Fair Dealings Obligations (Milk) Regulations will apply to all existing contracts by 9 July 2025.