Asda, The Co-op and Morrisons Defend Milk Price Cuts
By Laura Elliott.
UK retailers who currently don’t use the cost of production payment models to value their milk have defended their decisions following ‘”catastrophic” processor price cuts this week. Some of these cuts will mean that farmers will lose around 2ppl on their milk sales.
As reported by The Grocer, farmers whose milk is supplied to Asda, Morrisons, and the Co-operative will see a drop in their milk prices. Currently, farmers do receive a premium from their retailers as well as the price received from the processors, however, their average milk price is determined by the processor.
As reported by International Supermarket News last week, the Robert Wiseman Dairies have announced a cut of 1.7ppl to the price it pays for milk. Now, Dairy Crest and Arla have also announced cuts of 1.65ppl and 2ppl respectively.
A spokesperson for The Co-operative Group said that different pricing models are based on the cost of production or on offering a premium, saying that “both have merits”. Morrisons also claimed that they “have no plans to change our model”, while Asda declined to comment.
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