Iceland announces milk price increase for dairy farmers
Iceland, whose ambitious plans for growth and expansion have been ongoing since a relaunch last year, has announced it will increase the price of milk it pays to dairy farmers, while keeping the price of 1 litre unchanged for customers.
10 August 2018 | 0
The price of milk isn’t something most people would put a lot of thought into, save for whether it’s cost-effective to buy it in a one litre bottle or two. For dairy farmers who sell milk wholesale, the difference of a few cents in cost price can make a world of difference.
That is what supermarket retailer and frozen food specialist Iceland has committed to pay its milk suppliers 2c extra per litre, while keeping the price uinchanged for customers.
2018 has been an extremely challenging time for farmers in Ireland, with the once-in-a-generation snowfall earlier this year followed by extreme temperatures and drought conditions during the summer months. The store said that the move is part of its “social responsibility and commitment to sustainability in local communities”.
The extra 2c being paid directly to the dairy farmer will be fully absorbed by Iceland, the retailer said, and will in no way be passed on to the customer.
Ron Metcalfe, MD of Iceland Ireland, said that while the brand is known as a frozen food specialist, fresh product is also a major part of its business in Ireland.
“We always put customers first,” Metcalfe said, “and that means a combination of great value, great products and a sustainable supply chain. This commitment hits the mark on all fronts for the communities we serve.”
Metcalfe called on Iceland’s competitors to follow its lead and support dairy farmers in Ireland by matching the 2c per litre offer.
Meanwhile, Iceland’s 24th store in Ireland – part of an aggressive expansion programme commenced last year – will open in Roscommon next week.’’