We’re increasing the premium we pay our dairy farmers by 2p a litre
From August 1 we are increasing the premium we pay the dedicated farmers who produce our milk by 2p per litre.
The increase means our 272 Dairylink farmers will continue to be paid 27.5p per litre for the milk they produce for us, offsetting a cut previously announced by milk processing company Arla.
The additional premium is, on average, equivalent to around £30,000 a year for a Dairylink farmer and means the price they are paid will not reduce on August 1 as previously feared.
The decision comes after a series of meetings with our farmers in recent weeks. As a result, we will significantly increase the premium we pay for our milk, while investing in the long-term security of the supply chain.
Karl Martin, commercial director for dairy, said: "We have listened to the concerns of our dedicated dairy farmers and recognise the financial pressures they are under. As a result, from 1st August we will increase the premium we pay from 1p per litre to 3p per litre.
“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.”
To give farmers 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 us to buy 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.”
The move to support farmers will not result in a price increase on the shelves.