News that a major retailer is to increase the price it pays its dairy farmers is a clear signal to other buyers, according to the NFU.

 

The Co-operative announced on Friday it will pay an increased premium of 2.57ppl with immediate effect, rising to 4.27ppl from August 1.

This will increase the Co-operative’s farmer milk price to 29ppl with immediate effect.

The move comes after mounting public pressure on retailers to deliver fair prices to farmers, culminating in demonstrations outside three milk processing plants in Yorkshire, Leicestershire and Somerset.

An industry coalition made up of the NFU, RABDF, NFU Scotland, NFU Cymru, TFA and FFA has been calling for price cuts intended for August 1 to be scrapped and for price cuts which have already impacted to be rescinded.

NFU President Peter Kendall said: “We are really pleased by the positive response from The Co-operative in lifting its milk price significantly and moving towards a sustainable funding model for the future. 

"The company’s recognition of the real difficulties being faced by British farmers this summer and commitment to support them through these difficult times is to be applauded. 

“However, we now need to see all retailers and major buyers step up to the plate. We have yet to see substantial moves from either Asda or Morrisons, who are now waging war with each other on milk prices, a move that appears to make a mockery of the situation farmers are facing.

“But the spotlight will now turn on the other retail chains, the discounters, the middle ground and the major food catering companies, who buy sizeable volumes of milk and who I have written to in the past few days.”