Supermarkets Asda and Lidl are the latest supermarkets in the UK to follow the Co-op, Morrisons and Aldi in agreeing to raise the premiums paid to farmers on milk from next month. The retailers have both announced they will pay an extra 2p per litre to suppliers from next Wednesday, 1 August. Asda's milk farmers will now receive 29.5p per litre and it has offered its DairyLink farmers a 2p per litre 'winter feed supplement' from August until the end of the year.
Earlier this month a number of the UK's milk processors proposed cuts to the price farmers would receive per litre, which farmers said would make the industry unviable for many. The Arla Foods processing plant in Leeds was targeted by
protestors last night (24 Jul), with all entrances blockaded by several hundred farmers. Processing 2 billion litres of milk per year, Arla Foods, the Danish-Swedish-German farmers co-operative is one of the UK's leading suppliers and processors of milk.
Dairy Crest, Arla Foods and Robert Wiseman Dairies, the UK's three biggest milk processors, all cut prices paid to farmers and further reductions were due to come into place next month, meaning that farmers would receive between 24p and 25p per litre, despite estimates claiming that the production cost per litre is 30p by the National Farmer's Union.
Britain's farming minister, Jim Paice, will meet representatives from Morrisons, Asda, the Co-op and Iceland later today to discuss the matter which has dominated headlines for several days, with farmers protesting across the country. (25 Jul)
© 2012 ESM: European Supermarket Magazine
