Farming News - Dairy protests: Supermarkets announce floor prices for milk

Dairy protests: Supermarkets announce floor prices for milk

14 Aug 2015
Frontdesk / Livestock

Farming unions have welcomed moves by supermarkets to improve farmers’ returns after farmers launched protests and appeals for more support amidst the ongoing dairy crisis.
On Friday, Morrisons agreed to move to a floor price of 26p per litre across all liquid milk by the end of August. The Yorkshire-based supermarket - one of the UK’s ‘big four’ - announced that it will launch a ‘Milk for Farmers’ cheese line alongside the liquid milk line, following a second meeting with the NFU, Tenant Farmers Association (TFA) and Farmers for Action (FFA)

Morrisons’ new cheddar cheese brand, which will be launched in autumn, will be sold at a 34p premium to customers, which will equate to 10p per litre going back into the farm supply base.

Late on Thursday, Asda announced that it would commit to paying 28p per litre for 100 per cent of its liquid milk volume throughout its entire range, starting from Monday (17th August). Asda will pay 28ppl to supplier Arla, and the cooperative is expected to pass this on to its suppliers.

On Friday, Aldi announced a new floor price of 28p per litre, which will also be paid form Monday.

Farm groups react to commitments

In response to Morrisons’ announcement, NFU, TFA and FFA said, “We are pleased that Morrisons has recognised the need to support the dairy sector at this difficult time. Morrisons must continue conversations with its processors on a regular basis. 

“Our main concern at present is that any relief within the cheese sector is being funded by price increases to customers. We believe there is sufficient margin within cheese sales which should avoid customers having to pay more.”
Both Asda and Morrisons have been targeted by protestors in recent weeks. This culminated with two cows being led through an Asda store in Staffordshire on Sunday.

Commenting on Aldi’s move on Friday, NFU dairy board chair Rob Harrison said the NFU is working to ensure that the public understand the dire situation facing dairy farmers. He added, “We welcome this first step from Aldi on milk which is in line with its recent commitments to back British farmers on fruit and vegetables. This rise must be reflected in the price paid to the farmers on the ground.

“We will continue conversations with Aldi as it looks to develop its position on cheese and other dairy products.”