Asda and Lidl will increase the amount they pay dairy farmers for milk from next Wednesday after recent milk price protests.
The grocers will offset planned cuts by the four major milk processors on August 1 by increasing the premium per litre of milk by 2p.
Asda will now pay its farmers 29.5p per litre following widespread pressure on the major grocers from farmers who claim they are paid below the cost of production.
This is the second time Asda has increased its premium after putting up the price it pays by 2p earlier this month.
Asda said: “As well as taking direct action to support our farmers, we will continue to discuss the wider milk procurement model as part of our commitment to improving the sustainability of the British dairy supply chain, while at the same time continuing to help hard pressed families make ends meet.”
On Monday, farming minister Jim Paice brokered a voluntary code between milk processors and farmers to give the latter more power in the supply chain.
The cost of production is estimated at 30p a litre by the National Farmers’ Union.