MMG Dairy Farmers, which represents 1,200 dairy farmers who supply milk processor Muller, has achieved Dairy Producer Organisation (DPO) status.
Following an application to the Rural Payments Agency earlier this year, MMG’s application was ratified and formal recognition as a DPO.
Benefits of this include being recognised by Defra as the de-facto negotiating body for a group of producers.
Milk price discussions must also be transparent and justifiable going forward.
New legislation passed earlier this year provided for the creation of DPOs to act as official representative bodies negotiating on behalf of farmers.
MMG Dairy Farmers, a representative body that represents approximately 1,200 dairy farmers across Britain who supply Muller, welcomed the news.
“Becoming a DPO reinforces our working relationship with Müller, and ensures we are being governed in a professional manner," said Grant Hartman, chair of MMG.
"As a board, we are excited by this step and look forward to representing our members as the UK’s largest Dairy Producer Organisation.”
The DPO status will ensure the ability for MMG to act fully on behalf of farmers when dealing with proposed milk supply contract changes.
It also ensures Muller has a requirement to consult with the representative body before making changes.
Richard Collins, head of agriculture at Muller welcomed the news: "We are working in partnership with our suppliers, the great British dairy farmers.
"We’re proud of our strong working relationship with the MMG and were delighted to support them with their DPO application.”
It comes as Muller recently announced the approval from the Competition and Markets Authority (CMA) regarding its agreement to acquire Yew Tree Dairy.
The acquisition, first announced in June and completed in October, will see Muller use Yew Tree's milk powder production capabilities to grow exports.
