Multiples are paying more to processors with Asda making it a condition of supply British dairy farmers are furious with the outcome of the latest set of raw milk prices offered by processors. The National Farmers' Union has branded Dairy Crest's flat rate increase of 1.4ppl "derisory". Deputy president Tim Bennett has also condemned Express Dairies' 1ppl producer price rise, saying that it would be passed on to doorstep customers in the form of a 2p a pint rise ­ equivalent to 3.5ppl increase. Accusing Express of being "hypocritical", Bennett said that dairy companies had been quick to pass on increased costs but had failed to recognise farmers' increased costs by paying them more for raw material. "Too many farmers have been forced out of business because of unsustainable prices offered by processors. They are now being made a scapegoat for a customer price rise." But this year supermarkets have not stood back from the controversy. Both Asda and Safeway are paying an additional 2ppl, asking processors to pass this money back to the farmers. In the case of Asda, which is supplied by Arla and Wiseman, it was made a condition of supply. Neither multiple has increased retail prices and both are taking a smaller margin on liquid milk. The NFU's case for higher producer prices is based in part on the fact that this year's production is below quota ­ which itself is fixed at only 85% of the UK's total dairy consumption. Producers are also critical of Dairy Crest, now the largest single milk buyer in the country, because it effectively sets the rates of the market in which it operates. {{PROVISIONS }}

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