The UK’s National Farmers Union has praised moves by UK grocer The Co-operative Group to establish its own dedicated milk supply.

The grocery retailer today (9 November) announced it will move to a dedicated milk supply scheme from August next year when its existing contracts expire. 

Over the coming months, the group will be finalising plans with milk processors which will result in up to 350 UK dairy farmers receivinga premium for supplying around 360m litres of milk to more than 4,00 Co-operative stores from August onwards.

The NFU said the move was an “encouraging development” and NFU dairy board chairman Mansel Raymond said:”I am extremely pleased that the Co-operative is honouring the commitment it made to the NFU at the start of the year to establish a dedicated relationship with its liquid milk suppliers.”