Morrisons has agreed to meet with dairy farmers to discuss the price it pays for milk after a week of protests, including a blockade of two of the supermarket’s distribution centres.
The chain has come under fire, along with Asda, Aldi and Lidl, because it does not have deals in place to guarantee farmers they will be paid at least enough to cover the cost of production for milk.
A nationwide co-ordinated wave of “trolley dash” protests is also planned for Friday night, with farmers preparing to clear supermarkets’ shelves of milk and give it to charities. The protests are planned despite the threat of legal action by Morrisons, after at least a dozen of its stores were targeted.
The supermarket handed out leaflets to farmers on saying it would “reserve our right to commence court proceedings for an injunction to prevent any further action” that disrupts its business.
Morrisons said in a statement: “Recent protests have caused inconvenience to customers and disruption to our stores. One customer has already been injured after being caught up in protester activity. We understand the reasons behind the protests but we ask they take place safely. If the activity continues to endanger customers and colleagues, we will take the necessary steps to ensure their safety.”
Farmers say they are facing a crisis as all the major milk processors cut the price they pay because of a glut in the European market. Wholesale prices have plunged compared with last year as good weather has boosted production just as a Russian ban on importing dairy goods from Europe and a decline in sales to China has dented demand.
The UK supermarkets are also keen to push down what farmers are paid amid a price war in which everyday goods such as milk and butter play a central role.
Farmers were paid an average 23.66p per litre for milk in June, down 10% since January and 25% lower than a year ago, according to AHDB Dairy, the British dairy organisation. Farmers say they need to be paid at least 30p to produce each litre. Some big stores have agreements in place to buy milk with guaranteed prices – at around 30p per litre.
On Friday, the pressure was ramped up as Müller, on of the UK’s biggest milk processors, said it would cut the price it pays farmers by 0.8p to 22.35 pence per litre from next month.
The company said it was cutting the price as dairy farmers in Britain had increased the supply of milk by 1.6bn litres over the last 12 months compared with the same period two years ago. That is the equivalent of 80,000 tanker loads or more than 40 pints of milk for every person in the UK.
“We are seeing a significant imbalance between supply and demand in the UK and globally, and this is weighing heavily on the value of the milk produced by farmers,” said Martin Armstrong, head of milk supply for Müller UK & Ireland.
“We are not in a position to avoid the impact of these powerful and cyclical market fundamentals.”
