Asda has increased the amount it pays farmers for their milk but cut the price it charges customers in its stores.

The move means the 550 members of the Arla Foods Milk Partnership, which supplies most of Asda’s milk, who are on an Asda contract will see their premium over the group’s standard price double to 1p/litre.

At the same time, shoppers will pay 1p/pint less for milk with the price dropping from 33p to 32p.

To back up the initiative Asda is launching a multi-million pound advertising campaign.

For more details see Farmers Weekly on 17 March.