26p per litre and a new ‘Milk for Farmers’ cheese line – NFU reaction

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Morrisons has agreed to move to a floor price of 26p per litre across all liquid milk by the end of August after a second meeting with the NFU, Tenant Farmers Association (TFA) and Farmers for Action (FFA) today.

The retailer has also said that it will launch a ‘Milk for Farmers’ cheese line alongside the liquid milk line this autumn. This cheddar cheese brand will be sold at a 34p premium to customers, which will equate to 10p per litre going back into the farm supply base.

In a joint statement the NFU, TFA and FFA said: “After our conversations today we are pleased that Morrisons has recognised the need to support the dairy sector at this difficult time. Morrisons must continue conversations with its processors on a regular basis. And it is absolutely vital that the extra money goes back to British farmers - we cannot emphasise this enough.

“Further work is needed within the cheese sector and we will continue discussions with Morrisons on this issue. Our main concern at present is that any relief within the cheese sector is being funded by price increases to customers. We believe there is sufficient margin within cheese sales which should avoid customers having to pay more.”