Asda has upped its farmgate milk price by another 2p/litre, saying it understands the increasing cost pressures facing dairy farmers.
The announcement on Tuesday (24 July) follows a 3p/litre increase announced by the retailer last week to offset cuts previously announced by dairy processor Arla.
“We have continued to listen to our farmers and their growing concerns about the forecast cost of winter feeding,” said an Asda spokeswoman.
“With that in mind, Asda will be increasing the premium paid to our DairyLink farmers by a further 2p/litre from August until the end of the year.”
The premium paid by Asda will now be 5p/litre above the Arla base price. It means farmers belonging to Asda's Dairylink producer group will receive paid 29.5p/litre.
Asda said it would continue to discuss the “wider milk procurement model” as part of its commitment to improving the sustainability of the British dairy supply chain.
It remains to be seen whether latest Asda increase is enough to stop the retailer being targeted by farmers campaigning against milk price cuts.
Attention had remained focused on Asda because its intitial 3p/litre increase still left it paying farmers less than the cost of production for milk.
The Farmers For Action website had suggested that disgruntled Asda producers would mount a massive campaign against the retailer, commencing on Tuesday (24 July).
Targets were likely to include Asda distribution centres and superstores, the website said.
The pressure group has coordinated blockades which have seen thousands of farmers take to the streets in protest at milk price cuts since last Thursday (19 July).
Asda insisted the letter was “simply reminding” FFA that while it respected farmers' right to peaceful protest the FFA should engage with Asda before taking action.
For more on milk price cuts
See our dedicated page on the milk price crisis