The UK's Fourth-Largest Retailer Said It Would Increase The Premium It Pays for Milk

Morrisons is to increase what it pays to milk farmers, becoming the latest UK retailer to up its payment amid anger from suppliers.

The UK's fourth-largest retailer said it would increase the premium it pays for milk and make an extra payment to farmers affected by the "extreme" recent weather in the country.

From 1 August, Morrisons will pay an additional 2p per litre and an extra payment equivalent to 3p a litre from 1 August.

Morrisons has been one of the UK retailers that has faced criticism from farmers for the price it pays for its milk.

Farmers have held protests outside Morrisons stores and at a distribution site in the south-west of England.

The protests, which have also targeted rival retailer Asda and processors including Robert Wiseman Dairies, were prompted by a series of price cuts by UK dairy manufacturers.

Morrisons said the extra payments will last until the end of October when they will be "reviewed".

Commercial director Richard Hodgson said: "We recognise the exceptional pressure on farmers currently and continue to aim to support all farmers not just those that have dedicated contracts. The recent announcements by our processors will reduce the payment to farmers for the milk we sell and therefore we are announcing payments that negate their impact."

The retailer said it has been "looking at a long-term solution to volatile milk prices" and would "accelerate" the programme.

Peter Kendall, president of the National Farmers Union, welcomed Morrisons' move. "We’re really pleased to see Morrisons response to the calls from a coalition of farming groups to reverse the announced price reductions and address the exceptional costs dairy farmers are now facing. We need a long-term solution that addresses the need for a sustainable raw milk supply into the future. It's now critical that other retailers and major buyers of milk respond to the responsible steps Morrisons is taking."

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Morrisons is to increase the premium it pays on milk to farmers and will also introduce support payments for farmers affected by the current bad weather.

Today’s announcement will increase the payments made by Morrisons to dairy farmers to 6p-a-litre. Morrisons will pay an additional 2p-a-litre premium for every litre of milk that it buys. There will also be an additional support payment equivalent to 3p-a-litre because of the extreme weather that is currently affecting farmers. These payments will last from August through to the end of October when they will be reviewed.

Richard Hodgson, Commercial Director of Morrisons said: "We recognise the exceptional pressure on farmers currently and continue to aim to support all farmers not just those that have dedicated contracts. The recent announcements by our processors will reduce the payment to farmers for the milk we sell and therefore we are announcing payments that negate their impact.”

Peter Kendall, President of the National Farmers Union said: “We’re really pleased to see Morrisons response to the calls from a coalition of farming groups to reverse the announced price reductions and address the exceptional costs dairy farmers are now facing. We need a long-term solution that addresses the need for a sustainable raw milk supply into the future. It’s now critical that other retailers and major buyers of milk respond to the responsible steps Morrisons is taking.”

Morrisons already pays a 1p-a-litre premium and today’s announced increases will be spread across all non aligned farmers in our processors’ pools from August 1st.

Morrisons has been looking at a longer term solution to volatile milk price and will accelerate this programme.

Original source: Morrisons