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Asda says increased payment to processors will be passed on to farmers

Supermarket giant Asda has announced it is to increase the amount of money it pays its milk suppliers “to support farmers in their hour of need”.

Asda says its decision to commit to paying 28p per litre for 100 per cent of its liquid milk volume throughout its entire range is a significant leap forward in recognising the true value of British dairy products, the NFU said today.

The retailer has committed to the new price from next Monday, August 17, for “the foreseeable future”.

It will pay 28p per litre to processor Arla, which will then be expected to pass this on to its British farmer suppliers.

NFU President Meurig Raymond said: “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.”

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