Asda prices up milk as supermarkets cave in to pressure
SUPERMARKET Asda has folded to pressure from the National Farmers Union and has announced it will pay 28p a litre for milk throughout its entire range.
It expects milk processor Arla to pass this on to British farmers.
The NFU said the steps that Asda were making were a “significant leap forward” as it attempts to force retailers to charge a fair price for their milk products.
Farmers estimate that it costs between 30 and 32p to produce a litre of milk, but the average price paid across the UK is 23.66p.
This follows supermarket Morrisons earlier this week announcing the launch a four-pint “Morrisons Milk for Farmers” with a 10p-a-litre surcharge that is to be passed directly to its milk supplier, Arla.
“We will stock this product in all our stores, offering our customers the choice to support dairy farmers directly,” said Morrisons’ corporate services director Martyn Jones.
NFU President Meurig Raymond said of Asda’s changes: “The NFU has been lobbying tirelessly for Asda to recognise the plight of the dairy industry so we are pleased that Asda has moved to support farmers in their hour of need.
“It is clear from Asda that this commitment is to support the UK dairy industry at a time of crisis. It is now important that Arla ensures this is delivered to British farmers on the ground, with immediate effect.
“This decision recognises that our dairy farmers need a fair price so consumers can ensure they have access to British dairy products now and in the future.”
An Asda spokesperson said: “Today, 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 Mark label and not passing on any of the costs to customers – our retail price stays the same.”
According to Sky News, Tesco and Sainsburys have ruled out following in the footsteps of Morrisons or Asda,, saying they already pay a fair price based on the cost of production.
