Arla has picked up the contract to supply liquid milk to Lidl's Scottish stores after Graham's The Family Dairy failed to match it on price.
The Arla contract which will see it supplying milk to more than 90 Lidl stores commenced earlier this month.
Graham's chairman, Dr Robert Graham, claimed the contract "was at a commercial price we didn't feel we could match".
Graham's had enjoyed working with Lidl in Scotland, he said, adding "you never know what will happen".
Lidl declined to comment on the deal, claiming it was not company policy to talk about its suppliers.
Arla said it was unable to confirm the volumes the contract entails.
Despite the loss of the Lidl business, Graham's announced this week that it is to increase the price it pays its 70 Scottish dairy farmers by 0.5 pence per litre, to 27.3ppl, from 1 August.
The Arla contract which will see it supplying milk to more than 90 Lidl stores commenced earlier this month.
Graham's chairman, Dr Robert Graham, claimed the contract "was at a commercial price we didn't feel we could match".
Graham's had enjoyed working with Lidl in Scotland, he said, adding "you never know what will happen".
Lidl declined to comment on the deal, claiming it was not company policy to talk about its suppliers.
Arla said it was unable to confirm the volumes the contract entails.
Despite the loss of the Lidl business, Graham's announced this week that it is to increase the price it pays its 70 Scottish dairy farmers by 0.5 pence per litre, to 27.3ppl, from 1 August.
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