Dairy Crisis: UK Supermarket Morrisons Extends Support to Farmers

07 Sept 2015 --- Morrisons has extended its range of measures to help dairy farmers by announcing further initiatives to support farmers supplying the cheese industry.

Morrisons previously announced a number of steps to directly help dairy farmers including:

• Creating a new brand of milk, Morrisons Milk for Farmers, where 10 pence per litre goes back to Arla farmers.

• Creating a Milk for Farmers cheddar cheese priced at a retail premium of 34 pence-a-pack above our standard Morrisons cheddar price to deliver the equivalent of 10p-a-litre back to farmers who supply the milk.

• Increasing the guaranteed minimum price offered to processors, for the liquid milk element of processed fresh milk, through the winter.

This week Morrisons launched the new Lake District brand of British cheese, which will carry the Red Tractor logo, and its ‘Milk for Farmers ‘ fresh milk and cheddar cheese range are expected in stores in early October.

Today, Morrisons confirmed to the NFU and FFA that it will introduce new measures specifically to support dairy farmers working within the cheese industry.

• On Medium Cheddar Morrisons will pay a 9.5 per pence kg of cheese (equivalent to 1ppl) supplement over the winter period on this volume, to its processors, starting next week.

• On all of Morrisons Mild Cheddar (standard & Savers brands) Morrisons will pay a 28.5 per pence kg (equivalent to 3ppl) supplement over the winter period to its processors on this volume also starting next week.

All additional funds generated will be paid back to farmers through Morrisons suppliers starting in October.

In addition, over the winter period Morrisons will move from 95% of cheddar being British to 99% to further support the industry.

Morrisons Corporate Services Director Martyn Jones said: “Our relationship with the farming community is very important to us and, in support of dairy farmers we are committed to introducing a number of measures including this additional winter supplement on cheese as well as the launch of the new ‘Milk for Farmers’ range. Our shift to 99% British cheese in all of our stores further demonstrates our commitment to the British dairy farming industry and we urge all other retailers to show the same level of support for this great British product.”

“With this significant investment on cheese, following our guaranteed minimum farm gate price on milk announced last week, we believe Morrisons can work with both dairy farmers and dairy processors to create a long term sustainable business for all parties.”