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| Morrisons to create new milk brand for farmers | Morrisons to create new milk brand for farmers |
| (35 minutes later) | |
| Morrisons will sell a new milk brand which will see 10p paid per litre to farmers, the supermarket says. | Morrisons will sell a new milk brand which will see 10p paid per litre to farmers, the supermarket says. |
| The Milk for Farmers brand means a four pint bottle (2.27 litres), which now sells for 89p, will cost an extra 23p. | The Milk for Farmers brand means a four pint bottle (2.27 litres), which now sells for 89p, will cost an extra 23p. |
| Other retailers have similar deals, but dairy organisation AHDB Dairy said 10p would make "a considerable difference". | Other retailers have similar deals, but dairy organisation AHDB Dairy said 10p would make "a considerable difference". |
| The move comes after farming leaders met Morrisons bosses over concerns about the impact a sharp drop in the amount paid was having on the industry. | The move comes after farming leaders met Morrisons bosses over concerns about the impact a sharp drop in the amount paid was having on the industry. |
| The National Farmers' Union (NFU) said it would now be writing to other sellers, asking them to follow Morrisons's lead. | The National Farmers' Union (NFU) said it would now be writing to other sellers, asking them to follow Morrisons's lead. |
| The industry says a reduction in global demand for milk has led to an over-supply in the UK, creating difficult conditions for many dairy farmers. | The industry says a reduction in global demand for milk has led to an over-supply in the UK, creating difficult conditions for many dairy farmers. |
| The NFU says the "huge crisis" had already driven 256 herds out of the industry so far in 2015. | The NFU says the "huge crisis" had already driven 256 herds out of the industry so far in 2015. |
| Analysis | Analysis |
| By Claire Marshall, BBC News | By Claire Marshall, BBC News |
| What has been the initial reaction from the world of dairy farming? | What has been the initial reaction from the world of dairy farming? |
| In a nutshell - positive, but cautious. Farmers say that it is a good first step, but complete transparency is needed. They want to know exactly who will get the extra 10p, and how it will get to them. | In a nutshell - positive, but cautious. Farmers say that it is a good first step, but complete transparency is needed. They want to know exactly who will get the extra 10p, and how it will get to them. |
| Will each of the 3,000 Arla farmers get a share of the 10p? Or just those which supply Morrisons? In which case, would a separate supply group need to be set up? | Will each of the 3,000 Arla farmers get a share of the 10p? Or just those which supply Morrisons? In which case, would a separate supply group need to be set up? |
| One said: "It will be interesting to see if they hand on the 10p. You know, usually they find a way to make it disappear." | One said: "It will be interesting to see if they hand on the 10p. You know, usually they find a way to make it disappear." |
| Paul Holt, a farmer in Staffordshire said prices were so low because fresh liquid milk was wrongly being treated like a commodity such as butter or cheese, when it was a market unique to the UK and "on the continent all you get is UHT milk". | Paul Holt, a farmer in Staffordshire said prices were so low because fresh liquid milk was wrongly being treated like a commodity such as butter or cheese, when it was a market unique to the UK and "on the continent all you get is UHT milk". |
| What the new milk brand undoubtedly does is give shoppers the opportunity to clearly show their support - or lack of it - for British farmers. | What the new milk brand undoubtedly does is give shoppers the opportunity to clearly show their support - or lack of it - for British farmers. |
| The extra money from the Morrisons brand will be given directly to farmers within Arla, Britain's biggest milk co-operative. | The extra money from the Morrisons brand will be given directly to farmers within Arla, Britain's biggest milk co-operative. |
| Morrisons corporate services director Martyn Jones said: "We will be launching a milk brand that allows customers to pay a little more if they want to support British farmers. It will go into stores in the autumn." | Morrisons corporate services director Martyn Jones said: "We will be launching a milk brand that allows customers to pay a little more if they want to support British farmers. It will go into stores in the autumn." |
| NFU President Meurig Raymond said the move by Morrisons was a "welcome first step". | NFU President Meurig Raymond said the move by Morrisons was a "welcome first step". |
| "We will continue to urge Morrisons and all retailers to ensure that farmers from all sectors who supply their food get a fair price." | "We will continue to urge Morrisons and all retailers to ensure that farmers from all sectors who supply their food get a fair price." |
| The NFU said that currently Waitrose, Marks & Spencer, Tesco, Sainsbury's and the Co-op have arrangements where a farmer is paid a price above the cost of production for milk. Asda, Lidl and Aldi currently do not offer such deals to farmers. | The NFU said that currently Waitrose, Marks & Spencer, Tesco, Sainsbury's and the Co-op have arrangements where a farmer is paid a price above the cost of production for milk. Asda, Lidl and Aldi currently do not offer such deals to farmers. |
| Why has milk demand slumped? | Why has milk demand slumped? |
| Why is the milk row happening? | Why is the milk row happening? |
| NI agriculture minister seeks EU lobby support | |
| Welsh farming leader suggests cow cull | |
| Representatives from Morrisons met representatives from the UK's four main farming unions - the National Farmers' Union, NFU Cymru, NFU Scotland and the Ulster Farmers' Union, along with lobby group Farmers for Action. | Representatives from Morrisons met representatives from the UK's four main farming unions - the National Farmers' Union, NFU Cymru, NFU Scotland and the Ulster Farmers' Union, along with lobby group Farmers for Action. |
| On Monday farming unions met to develop an action plan calling for labels to indicate British products and long-term contracts for farmers. | On Monday farming unions met to develop an action plan calling for labels to indicate British products and long-term contracts for farmers. |
| Farmers have also been staging protests, including taking two cows into a supermarket in Staffordshire. | Farmers have also been staging protests, including taking two cows into a supermarket in Staffordshire. |
| AHDB Dairy, a British not-for-profit dairy organisation, said the average UK farm gate price - which is the amount paid to farmers - fell to 24.06p per litre in May, a decrease of a quarter over 12 months. | AHDB Dairy, a British not-for-profit dairy organisation, said the average UK farm gate price - which is the amount paid to farmers - fell to 24.06p per litre in May, a decrease of a quarter over 12 months. |
| Farmers estimate it costs 30-32p to produce each litre of milk. | Farmers estimate it costs 30-32p to produce each litre of milk. |
| Meanwhile, the NFU's former chief economist said it was "unrealistic" for farmers to believe they can be paid "whatever price they think is needed". | Meanwhile, the NFU's former chief economist said it was "unrealistic" for farmers to believe they can be paid "whatever price they think is needed". |
| Sean Rickard told BBC Radio 4's Farming Today that dairy farmers were paid an average of £28,000 a year from the taxpayer. | Sean Rickard told BBC Radio 4's Farming Today that dairy farmers were paid an average of £28,000 a year from the taxpayer. |
| He said: "I think it's unrealistic for anyone in that position to expect us just to pay them whatever price they think is needed to cover their cost of production." | He said: "I think it's unrealistic for anyone in that position to expect us just to pay them whatever price they think is needed to cover their cost of production." |