Aldi will pay farmers an extra 2p per litre for milk to offset the reductions being introduced by milk processors next month.

From 1 August, the discounter will pay the extra cash directly to farmers who do not benefit from being aligned to milk contract schemes.

“The recent milk price reductions and proposed cuts announced for August have been applied by processors without any influence from us,” said an Aldi spokesman.

“As a discounter, it is our number one priority to provide consumers with market-leading value.  The discount model runs with narrower margins than the major supermarkets who must take the responsibility to lead the market. We can never be in a position where we are uncompetitive, but strive to always be in a position where we are fair.

“Farmers are facing increasing pressures, not just because of the reduction in the price they are paid for their milk, but also because of the extreme weather conditions.  This increase is a direct response to the situation facing farmers at this difficult time.

“Furthermore, we welcome the notion of any scheme that promotes fair pricing for dairy farmers and provides a level platform for all parties involved in the production, distribution and retail of fresh milk.”