14th Aug 2015 13:30
LONDON (Alliance News) - Wm Morrison Supermarkets PLC Friday said it will increase the amount it pays its suppliers for milk following protests from dairy farmers over falling prices.
The supermarket chain said it will pay a minimum of 26 pence per litre to its suppliers from later this month and through the winter, although this is still below the 30p per litre which industry experts claim it costs farmers to produce milk.
The price of milk has fallen by a quarter over the past year and UK supermarkets have been under pressure of late to increase the amount they pay their suppliers in a dispute which has seen farmers empty supermarket shelves through the mass purchase of milk and parade through supermarket aisles with cows from their farms.
Earlier this week Morrisons announced that it would create a new brand of milk, 'Milk For Farmers', at a 10p per litre premium to its standard range with the extra 10p going back to farmers.
Morrisons announced on Friday that it will do the same with cheese by creating a 'Milk for Farmers' cheddar cheese, priced at a retail premium of 34p per pack above its standard cheddar price to deliver 10p a litre back to the farmers who supply the milk.
"This month, we will continue discussions with our cheese processor about other initiatives that will help their dairy farmers. We hope that this offer along with the other initiatives we have announced this week will help our suppliers to better support British dairy farmers," Morrisons said in a statement.
Shares in Morrisons were trading up 1.0% at 177.80p Friday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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