Morrisons has announced an increase in the price it pays farmers across its own brand fresh milk and Milk For Farmers brand.
The retailer will increase the retail price for its standard four pint offering from 89p to £1 and its Milk For Farmers four pint offering from £1.12 to £1.23. This move means the Milk For Farmers range retains its 23p premium on a four pint bottle.
Rick Bourne, Morrisons dairy director, said: “We believe customers are now ready to pay a little extra to support the dairy sector."
He added the Milk For Farmers range had been three times more popular than Evian water in stores.
Morrisons Milk For Farmers brand has caused a mixed response from the industry since its introduction in summer. In November the retailer came under fire when it emerged only a quarter of the premium would go back to UK producers.
But yesterday’s price move was welcomed by the NFU. Dairy board chairman Rob Harrison said: "Today’s announcement by Morrisons is good news and moved them up the table in the support they provide farmers.
"However, there are still a few retailers languishing behind on the support they provide to guarantee high quality British dairy products every day of the year."
He also called for improved support to the cheese sector, claiming only half of the UK’s total milk volume was going into liquid milk.
He said: "A real issue, as seen by the recent farmgate price drops from a number of cheddar producers, is cheese.
"We need to arrest the falling consumption of British cheese and we urge retailers and food service to do their bit in promoting this vital part of the sector in the run up to Christmas and into 2016."