Press Centre
  • Asda announces it will increase premium paid to 272 dedicated Dairylink farmers from 1ppl to 3ppl from 1st August
  • Increased premium worth an additional £30,000 per year to average Dairylink farmer
  • Asda set to utilise new multimillion pound butter processing facility to provide route to market for cream

Asda announced today (Tuesday 17th July) it will increase the premium it pays its dedicated farmers from 1ppl to 3ppl from 1st August. This will mean Asda Dairylink farmers will continue to be paid 27.5ppl litre for the milk they produce for Asda, offsetting the cut in farmgate prices previously announced by Arla.

The additional premium is equivalent to on average, around £30,000 per year for a Dairylink farmer supplying Asda with milk, and means the price they receive per litre will not reduce on 1st August as previously feared.

Asda’s decision to act follows a series of meetings held with its farmers and their representatives over recent days and weeks. As a result Asda is set to significantly increase the premium it pays for its milk, while investing in the long-term security of the supply chain.

Karl Martin, Asda’s commercial director for dairy said: “We have listened to the concerns of our dedicated dairy farmers and recognise the financial pressures they are currently facing. As a result, from 1st August we will increase the premium we pay from 1ppl to 3ppl.

“Over the last eight years, in partnership with Arla, we have worked extremely hard to build an open, honest and transparent relationship with our farmers. We pride ourselves on listening and acting positively whenever necessary in order to ensure we operate within a sustainable supply chain.”

In order to provide UK dairy farmers with a market for the excess cream they produce, Arla has expanded its butter processing facility in Westbury, Wiltshire adding new production lines to the plant. This will enable Asda to purchase significantly more British butter from Arla.

Karl Martin added: “We are fully aware that the liquid milk we purchase is only half the story. A significant amount of the cream produced by the dairy industry in the UK is sold on the global commodity market. In order to improve returns to farmers, Asda is committed to driving retail sales of British butter and cream. ”

17 July 2012
Press Centre

No change in levels of disposable income for UK families says Asda Income Tracker

  • UK families saw disposable income levels flatten out in June, with average discretionary income of £150 a week, the same as a year earlier
  • Average UK household had £150 a week of discretionary income in June 2012, the same as a year earlier, but £7 down on the figure for June 2010
  • Improvements were driven by low inflation but uncertainty in the wider economy and labour market continues to cause concern
  • Regional disparity widens as the North of England and Northern Ireland feels strain more than South

The latest Asda Income Tracker has revealed that family spending power remained stable in June 2012 –the first time disposable income has not fallen year on year since September 2010. According to the latest figures the average UK family had £150 of weekly disposable income available to them in June 2012.

The slight improvement in disposable income recorded for June 2012 is driven by easing inflation on family budgets – with food, clothing and transport inflation all falling over the month. Annual CPI inflation fell for the third consecutive month in June, the lowest level since November 2009.

Despite the lessening impact of inflation on household budgets, when the month is put in context over two years UK families are still £7 a week down on disposable income available in 2010. High unemployment and slow pay growth continues to hold back income and create concerns for families.

Read more and download the full report
Posted in Press Centre on 19 July 2012