Morrisons plans to announce changes to the way it pays its milk farmers next week, the UK retailer said today (20 July).
The company has come under pressure from farming groups over the way it pays for its supplies of milk.
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According to pressure group Farmers for Action, Morrisons and Asda have been singled out by protesters because the premium they pay to suppliers in their milk pool is below the cost of production.
Morrisons told just-food today it “expected” to announce “a short-term fix and a long-term fix” to the “whole model” next week.
Retailers and dairy processors in the UK have come under criticism in recent weeks over the amount they pay milk farmers.
Price cuts from processors including Arla Foods, Robert Wiseman Dairies and Dairy Crest and frustration at how some retailers pay for milk have led to protests and threats supply could be disrupted during the Olympics.
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By GlobalDataLast night, farmers blockaded a Wiseman depot and a Morrisons distribution centre in Somerset, as well as Arla plants in Leicestershire and Leeds.
A spokesperson for Morrisons said deliveries from its distribution site were unaffected.
The retailer, however, has come under fresh criticism for its recent promotion that offered four pints of milk for GBP0.98.
The Morrisons spokesperson insisted there was “a lot of supply in the market at the moment” and added: “It’s important we sell volume through. It’s better it is sold through a store like Morrisons that pays a subsidy than other stores.”
