Asda has announced a further 2p per litre increase in the price it pays its milk farmers.

The higher price will come into force on 1 August and follows Asda’s announcement last week that it would increase the premium paid to its 272 dedicated Dairylink farmers from 1ppl to 3ppl.

NFU president Peter Kendall said Asda’s move should pave the way for the three major liquid milk processors – Dairy Crest, Arla and Robert Wiseman Dairies – to “do the right thing” and cancel the two rounds of price cuts due to take effect on 1 August.

“Today sees Asda joining Morrisons and The Co-operative Group in moving their milk price in the right direction,” Kendall said.

“They are all now committed to paying a price that covers their farmers’ cost of production.”

Kendall said the “coalition” of farmer organisations as well as the WI would “pull out all of the stops” to ensure processors’ did not implement their planned cuts.