Asda has announced plans to reduce its dairy suppliers to around 300, resulting in the loss of a 1p per litre premium for about 200 farmers.
The NFU has criticised the supermarket chain for poor communication.
Chief dairy adviser Hayley Campbell-Gibbons said: “This is terrible news for those affected and they will understandably be disappointed and frustrated by this news, having supplied Asda with milk for five years in some cases. This is not just a rebalance, but a total restructure of Asda’s milk supply base which should have been communicated to the farmers affected more clearly. Suppliers should have received more notice of the changes and more information on the realignment process and selection criteria that would be applied.”
Having made the reduction, Asda has said it will look to strengthen its relationship with remaining producers and back that up with more investment and commitment. The NFU hopes the supermarket will seize the opportunity to introduce a price that is more transparent, stable and substantial. We will seek a meeting with representatives of the chain at the earliest opportunity.
More dairy news from the NFU here. Find food sector retail news here.
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