The UK multiple Asda this week told its liquid milk suppliers to collect a further 2 pence per litre. The intention is for the money to be passed on to British farmers who have been criticising the retail trade for its low milk prises, the lowest in Europe. Asda has given assurances that the chain has no plans to add the extra payment to consumer prices.
Arla Foods Division UK has welcomed the move.
"We have agreed to pass on all extra monies associated with this increased
payment to dairy farmers," said Philip Wilkinson, Commercial Director.
“As a result of this, we will look urgently at what impact it will have on
the farm gate price.
This will mean looking at all the factors which affect the price we pay for
raw milk. These include the support of other customers and world prices for
commodity dairy products, which are currently extremely volatile.”
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