The NFU has hailed the Cooperative Supermarket’s decision to increase the premium it pays to its dairy farmer suppliers for a second time since the current dairy crisis began as “a breakthrough”. The union said the Cooperative’s announcement is “a clear signal to other buyers.”

The Cooperative made its announcement on Friday, following a ‘name and shame’ campaign orchestrated by the NFU, as part of which posters have been shared on the internet and made available to print which suggest the Cooperative, Asda and Morrison’s are failing to support their dairy suppliers.

From Friday, the Co-operative will pay an increased premium of 2.57pence per litre to its suppliers; this will rise to 4.27ppl from 1st August. The new premium will increase the Co-operative’s farm-gate milk price to 29ppl. Two weeks ago, processors including Robert Wiseman Dairies, which supplies the Cooperative, announced a second round of cuts to milk prices in less than a quarter, sparking emergency meetings in the dairy sector as farm-gate milk prices looked set to drop by around 4ppl below the price of production in less than three months.

Mounting public pressure on retailers and a number of demonstrations last week, during which farmers blockaded major processors’ plants, has led to similar announcements by retailers Asda and Morrison’s, although  farmers have said more needs to be done; a coalition of UK farming organisations has demanded that processors rescind all price cuts inflicted since April.

NFU President Peter Kendall commented on the Cooperative’s announcement, “We are really pleased by the positive response from The Co-operative today in lifting its milk price significantly and moving towards a sustainable funding model for the future.  The company’s recognition of the real difficulties being faced by British farmers this summer and commitment to support them through these difficult times is to be applauded. 

“However, we now need to see all retailers and major buyers step up to the plate. We have yet to see substantial moves from either Asda or Morrisons, who are now waging war with each other on milk prices, a move that appears to make a mockery of the situation farmers are facing.” 

Tweet