UK retailer Asda will increase the premium it pays the farmers who supply its liquid milk through the Arla Foods Milk Partnership.

After demonstrations targeting Asda for paying below the cost of production, Asda has bowed to pressure and increased the premium it pays farmers from 1ppl to 3ppl.

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The company said that the move would “offset” Arla’s recently announced plan to reduce the farm-gate milk price by 2ppl from 1 August. However, previous to this cut, Arla had already lowered the milk price by 2ppl. Farmers have demanded that both these cuts are reversed, threatening protests that could disrupt the UK’s milk supply if action is not taken.

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