Milk prices row: Asda pledges to pay supplier 28p a litre

BBC, 13 August 2015

Asda is to increase the price it pays its milk supplier to “a level that will assist” farmers, the supermarket says. The chain says it will commit to paying 28p per litre for 100% of its liquid milk throughout its entire range. It is less than the 30-32p farmers estimate it costs to produce each litre but the farming union welcomed it. Asda’s announcement comes after protests by dairy farmers at branches of Asda, Morrisons, Lidl and Aldi over the price they are paid for their milk. The National Farmers’ Union (NFU) said it was pleased Asda had recognised the “plight of the dairy industry” in its “hour of need”. The industry says a reduction in global demand for milk has led to an over-supply in the UK, creating difficult conditions for many dairy farmers.

‘Hour of need’
Asda said it would increase the price it paid per litre to its milk supplier Arla from Monday, with the intention that it be passed directly on to farmers. Read more

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