Dairy farmers supplying Muller who meet the conditions of the processor's Advantage scheme will see a milk price increase of 2 pence per litre from January.
Those producers who follow the programme will see their milk price rise to 32.00p per litre from 1 January 2022.
Muller's Advantage scheme aims to help up to 600 Muller Direct farmers operate progressive enterprises whilst also addressing a range of important issues.
Support to help improve supply chain collaboration, herd health and reductions in environmental impact is also provided.
These include reducing the use of antibiotics, sustainable sourcing of animal feed, reductions in energy and water use, recycling and enhancing biodiversity.
According to Muller, 99.5% of eligible supplying dairy farmers have opted to commit to the programme.
Rob Hutchison, chief operating officer at Müller Milk & Ingredients said: “The whole dairy supply chain is facing into increased inflationary pressure, and we know that our supplying farmers are seeing rising production costs.
“With markets strengthening, we wanted to make farmers aware of this decision as early as possible, giving them the information to support forward planning over the winter period.
“We will of course continue to monitor supply and demand in the coming months.”
