Sainsbury's extra penny per litre for dairy farmers won't buy us off says Farron
Local MP Tim Farron today gave a limited welcome to the announcement that Sainsbury's plan to raise the farm gate price it pays to farmers for milk, but has argued that one pence per litre is simply inadequate. Many farmers are currently facing financial difficulties and Sainsbury's decision is part of what they describe as their continued commitment to the dairy industry. However, the average prices paid to farmers for a litre of milk has dropped considerably over the last few years, from 20.43p in July 2001 to just 17.17p in July 2006. At the same time the price of milk has increased with the average supermarket mark up on milk almost tripling from 11% in 2002 to the current 30%, bearing no reflection on production costs which have not altered.
