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Farmers Waiting on Lactalis and Dale Farm after Morrisons Deal

09 September 2015

UK – It is up to the processors to “play their part” in passing on higher cheese payments offered by Morrisons to farmers this winter following negotiations between the retailer and farming leaders.

This is according to National Farmers Union chief dairy adviser Sian Davies following Morrisons pledge to pay 9.5 pence per kilo and 28.5 pence per kilo more on Medium and Mild Cheddar respectively.

She said farmers will welcome the news as they head into the more costly winter months.

Morrisons says the price lift, equal to one and three pence per litre, will start next week with all additional funds to be passed back to farmers through suppliers starting in October.

This coincides with further promises to increase the amount of cheddar being British from 95 to 99 per cent and to fix the Red Tractor logo on Lake District cheese.

Last month, Morrisons created a 'Milk for Farmers' brand securing an additional ten pence per litre back to farmers, with a further ten pence per litre going back to the processor pool on milk for Morrisons Cheddar, subsidised by a 34 pence per pack premium.

A guaranteed liquid milk minimum price was also pledged for processors on liquid milk for the winter.

Mrs Davies said: "The NFU is pleased that Morrisons has taken steps to ensure a more sustainable cheese supply chain going forward.

“It is now up to Lactalis and Dale Farm to ensure they play their part in passing it on to our farmers.”

A Morrisons spokesperson said: "Our shift to 99 per cent British cheese in all of our stores further demonstrates our commitment to the British dairy farming industry and we urge all other retailers to show the same level of support for this great British product.”

“With this significant investment on cheese, following our guaranteed minimum farm gate price on milk announced last week, we believe Morrisons can work with both dairy farmers and dairy processors to create a long term sustainable business for all parties.”

TheCattleSite News Desk

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