First Milk, the UK dairy processor, has won a price increase on its cheese from Asda, the company said today (23 July).


First Milk, which supplies Asda with all its own-label cheddar, said the UK’s second-largest retailer would pay GBP300 (US$600) more per tonne from 1 August.


Managing director Jeff Halliwell said First Milk had been in talks with its customers to raise prices to cover rising costs and said Asda had shown a “desire” to support the UK dairy sector.


He added: “It was very important for Asda that this price increase is passed back directly to dairy farmers, and as a farmer-owned business we can deliver that. ASDA has now set a benchmark on cheese price for others in the dairy sector to follow.”


Asda dairy general manager Jonathan Betts urged other retailers to up their prices. “We call on others in the dairy market to match this commitment to British farmers right now, especially when farmers’ costs have rocketed over the last few months.”

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