Asda will up the amount it pays its milk supplier as the retailer aims to act “in the best interests of farmers and customers”.

  • Asda to pay farmers 28p per litre of milk
  • Price to the customer stays the same
  • National Farmers Union welcomes the move

The move comes amid a heated row between milk farmers and retailers. Farmers have herded cows through Asda stores and blockaded Morrisons’ distribution centre to draw attention to what they have labelled unfair treatment as the price of milk drops. Aldi and Lidl have also been targeted.

In response, Asda rival Morrisons revealed this week that it will launch a new, more expensive milk range aimed at giving farmers 10p more.

Asda said from Monday it will commit to paying its supplier Arla 28p per litre for 100% of its liquid milk throughout its entire range.

That is less than the 30p-32p that farmers estimate it costs to produce each litre but the BBC reported that the farming union welcomed Asda’s move.

Asda said: “Asda’s origins are in dairy farming, which is why we are acting in the best interests of our farmers and our customers by increasing the price we pay, introducing the Farmer’s Marque label and not passing on any of the costs to customers - our retail price stays the same.”

The National Farmers’ Union (NFU) said it was pleased Asda had recognised the “plight of the dairy industry” in its “hour of need”.

Milk farmers have said a reduction in global demand for milk has led to an over-supply in the UK.

Waitrose, Marks & Spencer, Tesco, Sainsbury’s and the Co-op pay their farmers above the cost of production for milk, according to the NFU.