Published:13 September 2013

We’d like to clarify our position on the prices received by dairy farmers for the milk they produce. We buy milk from processors, rather than direct from the farmer, and it is these businesses who set the price that farmers receive. These processors have a broad portfolio of customers and produce a range of products.

Morrisons has commercial agreements with these processors, which both parties are currently satisfied with. We are in constant dialogue with them, like all of our suppliers, and have not refused to negotiate an increase. We will continue to maintain an open stance in regard to any negotiations requested.

The farmers that supply us with milk through our processors have received an increase in the price they receive of more than 4p per litre since last summer, taking the figure to an all time high.

Some farmers suggest Morrisons is refusing to pay better prices or negotiate a deal and that we are playing one processor off against the other.

While the farmgate price is not set by us, we want to be clear that we will continue to discuss the issue of milk prices with the processors we work with.