The Milk Crisis has escalated with dairy farmers protesting against low prices. Campaigns to publicise the crisis has seen farmers taking cows into supermarkets, clearing supermarket fridges of milk and blockading distribution centres.

Farmers estimate it costs between 30 and 32p to produce a litre of milk but the average price paid across the UK is 23.66 – a drop of 25 per cent over the last 12 months.

Asda has now said it will commit to paying 28p per litre for 100 per cent of its liquid milk volume throughout its entire range and this has been described ass a significant leap forward in recognising the true value of British dairy products by the NFU.

The retailer committed to the new price from Monday August 17 for the foreseeable future. It will pay 28p per litre to processor Arla, which will then be expected to pass this onto its British farmer suppliers.

NFU President Meurig Raymond said; “The NFU has been lobbying tirelessly for Asda to recognise the plight of the dairy industry so we are pleased that Asda has moved to support farmers in their hour of need.

“It is clear from Asda that this commitment is to support the UK dairy industry at a time of crisis. It is now important that Arla ensures this is delivered to British farmers on the ground, with immediate effect.

“This decision recognises that our dairy farmers need a fair price so consumers can ensure they have access to British dairy products now and in the future.”

Meanwhile Morrisons announced the introduction of a new range in October, called ‘Milk for Farmers’ which will be sold at a 10p a litre premium. A four-pint bottle currently retailing at 89p will cost an £1.12. The additional money would then be ‘passed directly back to dairy farmers’. However, this move has been branded a ‘token gesture’ and that the company is unfairly passing responsibility to consumers for paying a fair price for milk.

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

A reduction in the global demand for milk has caused an over-supply in the UK which has created the current low pricing. Britain's dairy industry had a trade deficit - the amount of money it is losing each year - last year of £1.2billion. Wholesale prices for butter, cream and cheese have also fallen by about a third in just the last 12 months.

Farming unions from across the UK have held an emergency summit to discuss the falling prices of lamb and arable as well as milk.