Asda Drops 200 Dairy Farmers Due To Milk Overload

Tue, 23 Mar 2010

 
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Asda has axed 200 dairy farmers from its milk supply chain due to oversupply, according to reports.

Speaking to BBC Radio 4's Farming Today programme, a spokesperson for the supermarket giant said that it took the decision to cut the number of dedicated farmers from 500 to 300 because it had more milk than it needed.

He added that the changes would provide more opportunities for the remaining dairy farmers on its books.

However, for those affected the move by Asda will result in their income being slashed by thousands of pounds a year.

David Brown, a dairy farmer based near Harrogate in North Yorkshire, said: "We got a letter saying Asda have been looking at the dedicated farmer pool and they have reduced it and unfortunately we will no longer be supplying milk to Asda ."

"It means I am going to lose somewhere in the region of £5,000 a year, which basically means there will be no future investment at this farm - that will be it."

Mark Smith, a dairy farmer in Nidderdale, North Yorkshire, added that the news that he was being axed from the Asda pool of milk suppliers was "gut-wrenching", while the National Farmers Union (NFU) blasted the move as "terrible news".