Milk price row: Morrisons to launch new brand that gives more cash back to farmersComments Off on Milk price row: Morrisons to launch new brand that gives more cash back to farmers
Morrisons is to launch a new brand of milk that gives 10p per litre of the retail price back to farmers following a row over milk prices.
Dairy farmers have faced a series of cuts to the price they get for the milk they produce.
The Department of Food and Rural Affairs (Defra) said the price per litre handed to farmers in June was 23.66p, a 25% fall from a year earlier. Farmers claim milk costs around 30p a litre to produce and they could be forced to shut down production if the price stays as it is.
Last week dairy farmers targeted supermarkets with protests, saying an industry price war had helped devalue the product in the eyes of consumer.
Asda, Morrisons, Lidl and Aldi came in for particularly harsh criticism, because unlike rivals, they do not have deals in place that ensure farmers are paid above the cost of production.
Morrisons today met with farmers’ unions to address the issue and announced the new brand, called ‘Morrisons Milk for Farmers’.
It will go into stores in the autumn and will give shoppers the choice to pay more for milk to support farmers.
“We want to offer practical help by launching a range of 4-pint milk at a retail premium of 10p per litre, all of which will be passed back directly to dairy farmers. 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.
The supermarket also gave details of how it pays for milk from majority supplier Arla.
It said its “cost model that automatically adjusts the price that we pay for milk, based on a combination of the independently set farmgate price [what farmers get] and other commodities such as diesel and plastics that influence the cost of milk”.
“We can confirm that we have asked our milk suppliers not to pass on further decreases in the current farmgate price to us, but to share any benefit with the dairy farmer instead,” it added.