According to Müller, the farms were selected because they either produce relatively low milk volumes or have failed to consistently meet the processor’s sustainability, welfare and quality requirements. The company said discussions had taken place with farmers before formal notice was issued and stressed that contracts could still be saved if both sides reach an agreement during the transition period.

The move comes at a difficult time for the UK dairy sector. Many producers remain below the cost of production, while high interest rates and poor margins are making expansion increasingly difficult. For some smaller farms, the only way to retain a contract would be to significantly increase output, an option that may require substantial new investment.

One Derbyshire dairy farmer told the BBC that the notice had forced the dispersal of his herd after being informed he would need to nearly double milk production to remain with Müller. The situation highlights how consolidation is accelerating in the British dairy industry, with processors increasingly favouring larger, more efficient suppliers that can meet tighter commercial and sustainability benchmarks.