Retailer Iceland Ireland has decided to pay an extra 2c/l to its milk suppliers and has instructed that this must be passed back directly to the farmers.

It said that this is part of its social responsibility policy and commitment to sustainability in local communities.

“This extra 2c being paid directly to the dairy farmer will be fully absorbed by Iceland Ireland and will in no way be passed on to the customer,” a statement from the company read.

“We always put customers first and that means a combination of great value, great products and a sustainable supply chain,” managing director of Iceland Ireland Ron Metcalfe said.

“This commitment hits the mark on all fronts for the communities we serve. Our mission has always been to offer the best value to our customers while supporting our local suppliers.”

The move follows heavy farmer opposition to its discount pricing of fresh milk, which was for sale at the equivalent of €1.45 for two litres.

Retailer and FMP chair Jim Mulhall called on all other retailers of fresh milk to follow Iceland’s lead and match the 2c/l offer.

“Liquid milk farming is a specialised operation which incurs extra costs of feeding, labour management and capital investment.

“While growth conditions are much improved, there is a huge deficit in winter forage supplies, which will cost liquid milk farmers dearly to replace,” Mulhall said, welcoming Iceland’s announcement.

Meanwhile, a spokesperson for German discounter Aldi told the Irish Farmers Journal it “introduced an additional branded fresh milk line in a select number of stores in response to local competition”.

“This product retails at €1.45 for two litres ... the cost of our price reductions and amazing prices are always borne by Aldi. Aldi pays a fair and sustainable price for all our products,” the spokesperson said.

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