Cumbrian farmers will see little benefit from a supermarket’s dedicated Milk For Farmers range, it has been claimed.

There was controversy following the launch of Morrisons’ Union flag-emblazoned range, after The Cumberland News revealed the profits would be divided among 13,500 European dairy producers.

The milk costs consumers an extra 23p on a four-pint bottle, with the price rise being donated directly back to the Arla co-operative.

Expected sales for this year for the Milk For Farmers are now likely to top £5m. However, a Cumbrian farmer claims that very little of that cash will make it into the county.


Les Armstrong Les Armstrong, a dairy farmer at Kirkoswald, said any initiative to help struggling dairy farmers was always welcome.

“They recognise that retailers and consumers think milk is at an unsustainable price,” he told The Cumberland News , “but in reality it does not start to address the problems in the UK milk industry.

“For most Cumbrian producers it will make no difference at all.”

Once divided among all the producers in the Arla co-operative, each farmer is expected to receive less than £400.

Morrisons has also faced criticism for branding on the range after some people wrongly assumed the Union flag on it meant the money went to British farmers – rather than that it was produced by British farmers.

The supermarket has defended its position.

A spoekesman said: “Currently the price that Arla pays for farmers’ milk is higher than its rivals in the UK and that is in part due to the effect of the extra money raised by Morrisons Milk for Farmers.

“About 3,000 farmers in the UK will benefit from these payments, alongside their European counterparts. We worked extremely quickly to introduce Milk for Farmers at a time when farmers said they needed help. Very soon, we will make changes to the packaging to clarify that while this is British milk the extra payments are shared between all of Arla’s farmers.”

Meanwhile, dairy cooperative First Milk, which supports hundreds of jobs in Cumbria, has announced that it is back in profit.

Half-year results from the owners of Aspatria’s Lake District Creamery revealed a multi-million pound turnaround in its performance.

From a position of hefty losses last year, the cooperative has made an operating profit of £1.1m in the first half of its financial year, compared with a loss of £7.6m in the same period last year. First Milk said it expected results for the second six months to March 2016 would also show a positive operating profit, compared with a £12.3m loss in the second half of last year.

The company is now expecting to make an operating profit for the current financial year as a whole.

Debt had continued to be reduced, they said, to £46.1m by the end of the first half year to September 2015, compared to £60.7m at March 2015.

Alistair Mackintosh, the National Farmers’ Union’s Cumbrian policy delegate, said: “We welcome the good news that First Milk is making a success of its turnaround.

“But we would hope that some of the profits they are making will benefit members – and their first step in the right direction would be to increase the milk price paid to their producers.”

Chief operating officer Mike Gallacher took up his post in March. Changes he has made so far include the introduction of A and B pricing for farmer members’ milk, as well as several top-level appointments in the group’s executive team. A new commercially-experienced chairman is also due to be appointed, replacing Sir Jim Paice, who resigned earlier this year.

“The actions taken to reduce costs, improve quality and drive operational performance are delivering results, with further progress planned over the next year,” said Mr Gallacher.

“We are confident this will deliver improved milk prices, and a more sustainable business model for our farmer shareholders.”