Morrisons has followed Iceland’s lead by increasing the retail price of a four-pint bottle of own-label milk from 89p to £1 - and has increased the price for its Milk for Farmers brand from £1.12 to £1.23.
The price hikes, which came into force on Monday (7 December), were a “move to support dairy farmers” said Morrisons, which also pledged to increase the price it paid to farmers through its two processors Arla and Dairy Crest.
However, it refused to disclose how much it paid the processors or how much extra farmers would get.
Morrisons dairy director Rick Bourne said the retailer believed customers were “now ready to pay a little extra” to support the dairy sector.
“Combined with the launch of the Milk for Farmers range, which is now nearly three times more popular than Evian in our stores, we are doing our bit to support the dairy industry at this difficult time,” he added.
The move was welcomed by Arla Foods farmer director Jonathan Ovens and NFU president Meurig Raymond.
“We welcome the news from Morrisons at a time of an unprecedented pressure for dairy farmers,” said Ovens. “We appreciate the continued commitment that Morrisons has given to our co-operative and its principles.”
Raymond praised Morrisons for recognising the “need to increase the sustainable price back to farm” at this difficult time.
“The whole industry needs to ensure that farmers supplying milk for all dairy products, not just liquid milk, are treated fairly during this market downturn,” he added.
Morrisons launched its Milk for Farmers brand - which guarantees to pay an extra 10p per litre back to farmers - in October.
Arla vice-president of milk and member services Ash Amirahmadi told MPs on the Efra committee last month that the new brand was selling seven times more than expected.
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