Milk farmer protests: Asda to increase amount it pays suppliers for product

The decision came after Morrisons rolled out plans to appease farmers

Asda is to increase the price it pays for milk (MYCHELE DANIAU/AFP/Getty Images)

Asda has announced it will increase the amount it pays its suppliers for milk, after farmers staged dramatic protests in supermarkets over prices.

The decision comes after Morrisons – a main target for angered farmers - said on Tuesday that it would launch a new brand of milk from which 10p-per-litre would go to producers. However, farmers said they would not rule out carrying out further protests at other supermarkets.

Asda has since pledged to pay 28p per litre for 100 per cent of its liquid milk volume throughout its entire range.

A spokesman for the supermarket said that it had confirmed with Arla, its milk supplier, that it will increase the price paid per litre for the product from Monday “to a level that will assist our farmers during the current crisis.”

He added that the supermarket will not pass any costs onto customers, and in-store prices will remain the same.

The National Farmers Union (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."

Farmers have staged protests after prices dropped by 25 per cent in a year, and supermarkets began selling milk below the amount it costs to produce the product.

In protests across the country, demonstrators blockaded distribution centres, stripped shop shelves, and even traipsed cattle through supermarkets.

However, Tesco and Sainsbury’s have not yet followed suite, and have argued that they pay a fair price based on the cost of production.