Morrisons launches milk that gives customers the choice to pay more to support farmers
Morrisons is to launch a new milk brand where ten pence-per-litre of the retail price will go directly to dairy farmers.
Sitting alongside Morrisons standard priced owned brand milk in the dairy aisle, “Morrisons Milk for Farmers” will go into all stores in the autumn and will be aimed at shoppers who are willing to pay more for milk to support farmers.
The move follows protests in supermarkets by dairy farmers concerned about the sharp drop in the price of milk and the amount farmers are paid for supplying it.
Morrisons corporate services director Martyn Jones said: “We recognise that the current market for liquid milk is impacting on hardworking dairy farmers and their families. We want to reassure the industry that the retail price we charge for Morrisons milk reflects the highly competitive retail market. It is not linked to the price we pay our milk suppliers.
“We want to offer practical help by launching a range of 4-pint milk at a retail premium of 10p per litre, all of which will be passed back directly to dairy farmers. We will stock this product in all our stores, offering our customers the choice to support dairy farmers directly.”
Morrisons has also given more details of how it pays for milk from its majority supplier Arla, which buys milk from farmers.
Jones said: “We also want to clarify that our current three year contract with Arla, who supply the majority of our milk, uses a cost model that automatically adjusts the price that we pay for milk, based on a combination of the independently set farmgate price and other commodities such as diesel and plastics that influence the cost of milk.
“We can confirm that we have asked our milk suppliers not to pass on further decreases in the current farmgate price to us, but to share any benefit with the dairy farmer instead.”
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