Asda, Britain‘s third largest supermarket, has recently increased the price it pays to its milk supplier to “a level that will assist” dairy farmers. The move follows figures that show sales of fresh milk in Britain are on course to hit their lowest level by value in eight years.
Asda has committed to pay 28p per litre for 100% of its liquid milk throughout its entire range. While this is lower than the 30-32p price range that farmers estimate it costs to produce each litre, the farming union has welcomed Asda‘s offer.
A spokesman for Asda said: “We have confirmed to our milk supplier, Arla, that we are increasing the price we pay per litre from Monday to a level that will assist our farmers during the current crisis. Asda‘s origins are in dairy farming which is why we are acting in the best interests of our farmers and our customers by increasing the price we pay, introducing the Farmer‘s Marque label and not passing on any of the costs to customers – our retail price stays the same.”
The National Farmers‘ Union (NFU) said that it is pleased that the big four grocer had recognised the “plight of the dairy industry” in its “hour of need”.
The NFU announced that currently Marks & Spencer, Waitrose, Tesco, Sainsbury‘s and the Co-op have arrangements where dairy farmers are paid a price above the cost of production for milk. Asda, Lidl and Aldi do not currently offer such deals.
The increased price paid to Arla will be in effect as of Monday.