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How much do supermarkets really pay dairy farmers?

Find out how much of the price you pay goes to farmers



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How much do supermarkets pay dairy farmers? #teamdairy

A lot of people want to support British dairy farmers, but don’t know how.

 

Unfortunately, there will never be a definitive answer to this question. Finding the best way to support farmers is not straight forward and there are a lot of variables between different companies and the different contracts farmers are on even at the same processor or supermarket and what is available in your local area.

 

Some retailers such as Morrisons, Lidl and Aldi pay supplements to boost farmers’ incomes. However, David Handley, chairman of Farmers for Action, has accused Muller in particular of using these supplements to not pay farmers a fair market price.

 

Asda source all their milk from Arla, a farmers’ co-operative.

 

The most important thing to do is to ensure you buy British dairy. It is not just milk, make sure your cheese, cream, yoghurts and any other dairy products are British too.

 


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Tesco

You pay: £1

It pays farmers: 65p

"For almost a decade we have worked with our dairy farmers to provide the best possible quality milk, produced to the highest standards for customers. Through the direct long term partnerships with our producers and the Fair For Farmers Guarantee, shoppers can been confident that every pint of own-brand milk they buy from Tesco, fosters a better future for hundreds of British dairy farmers."

 

"Because we use an independent price tracker to calculate the current costs of feed and fuel for our farmers every quarter, we are able to reflect the changes in our farmers' real costs so that they are not left disadvantaged."

Asda

You pay: £1

It pays Arla: 63.56p

"Our milk is supplied by the Arla farmer cooperative - the Arla dairy cooperative is owned by farmers.

 

"We moved to this model after guidance from those who were supplying us and means the price received by our farmers is set by their own cooperative business.

 

"They receive an on-account payment for their milk and take an equal share of any remaining profit. There is no link between retail prices and farmgate price."

Sainsburys

You pay: £1

It pays farmers: 67p

"The Sainsbury’s Dairy Development Group (SDDG) price promise has made sure our farmers get a fair price for their milk.

 

"When we formed the SDDG in 2007, we paid our farmers a premium over and above the usual market price for milk.

 

"But we quickly realised that this didn’t always cover the farmers’ production costs, so we sat down with the group and came up with a model that everyone thought was fair, which the farmers agreed on with a vote.

 

"We pay our dairy farmers 67% of the sale price of our 4 pint bottles."

Morrisons

You pay: £1

The price it pays processors is 'confidential'

It recieves milk from processors Arla and Dairy Crest.

 

In August 2015, it said: "We recognise that the current market for liquid milk is impacting on hardworking dairy farmers and their families.

 

"We want to reassure the industry that the retail price we charge for Morrisons milk reflects the highly competitive retail market. It is not linked to the price we pay our milk suppliers."

Co-operative

You pay: £1.39 or 2 for £2

It pays farmers: 58p

“We believe it is important that our farmers receive a fair price for the milk they provide to our customers so we collaborate closely with them and have an agreed system in place to set the price we pay them.

 

"It is reviewed quarterly, providing our farmers with transparency and stability for their long-term success, which we know they appreciate.”

Aldi

You pay: 95p

It pays processors: 63.56p

"All our milk is sourced via four processors from Red Tractor-assured farms across the UK. In addition, all our fresh cream, butter products and British varieties of cheese are produced in the UK using 100% British milk.

 

"It is important to note that the retail price of our milk is not linked in any way to the price we pay processors. Any reduction in the retail price is absorbed by Aldi and is not passed on to our processors.”

Waitrose

You pay: £1

It pays farmers: 70.32p

"Our milk pool comprises a closed group of around 80 conventional and organic farmers who supply us on dedicated contracts. We don’t operate a cost of production model, but we always take into account farm costs when negotiating the farmgate price – negotiations that we carry out directly with our farmers’ representatives rather than relying on our processor.

 

"We have always paid one of the best prices in the industry to our farmers for both conventional and organic milk. We pay this fair price because it gives farmers the reassurance and confidence to invest in their businesses. Farmers are the key to a thriving agricultural economy and it is important they receive a sustainable return for the top quality milk they provide."

Marks and Spencer

You pay: £1.29

It pays farmers: 69.2p

"We are the only retailer not to have engaged in the recent price war on milk.

 

"We were the first retailer to introduce a milk payment scheme over 16 years ago – ‘Milk Pledge Plus’ which helps to remove the volatility of the milk industry’s price fluctuations, giving our dairy farmers greater security.

 

"The price paid to M&S dairy farmers is directly linked to production costs including fuel, fertiliser and animal feed costs."

Lidl

You pay: 95p

It pays processors: 63.56p

"As a responsible retailer, we work very closely with farm assurance schemes such as Red Tractor and RSPCA Assured, which heavily champion British farming.

 

"We have an agreement in place with all of our milk processors that ensures that any cost price adjustments made by our processors to farmers are automatically reflected in the price we pay them and vice versa.

 

"Our cost prices are in no way linked to our retail prices and any reductions in retail prices are absorbed by Lidl."

Booths

You pay: £1

It pays farmers: 70.37p

"The pioneering Fair Milk scheme pledges to permanently pay the highest market price to farmers, ensuring farmers receive a fair price for their milk, covering the cost of production and enabling them to invest in a stable, profitable future as a result."

Other milk schemes in supermarkets

Milk for Farmers (Available at Morrisons)

You pay £1.23

The extra you pay goes to Arla, the farmers co-operative. This price is then shared with its 12,700 farmer owners across Europe.

 


Arla Farmers' milk (Available at Asda)

You pay £1.20

The extra you pay goes to Arla, the farmers co-operative. This price is then shared with its 12,700 farmer owners across Europe.

 


Nemi Milk (Part of Co-op's 'truly local' scheme)

You pay £1.89

Co-op now stocks NEMi Milk in 28 Lancashire stores.

 

"NEMi Dairy is committed to supporting British dairy farmers and vows to pay them a fair and sustainable price."

 

You pay £1.89 for a 2 litre bottle. They pay 60p to farmers. This is the equivalent of 68.1p of a 4 pint bottle.

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