UK retailer Asda has agreed that from 1 August 2008 it will increase the price it pays UK dairy co-operative First Milk for cheese by £300 (€380) per tonne.

Jonathan Betts, Asda’s general manager for dairy, comments: “This increase in the price we pay First Milk for cheese is aimed at reflecting farmers’ increased costs, and we will work closely with First Milk to monitor the market over the coming months. Against the current market backdrop, it is important that milk continues to go into making cheese – helping to keep a great British tradition and rural economies going.”

Jeff Halliwell, managing director of the First Milk Cheese Company, adds: “It was very important for Asda that this price increase is passed back directly to dairy farmers, and as a farmer-owned business we can deliver that. We have been speaking with all our customers individually on the need to significantly increase the price they pay for raw milk and cheese to reflect farmers costs.”