Farmers For Action has slammed the 2ppl increase, announced earlier today, for those dairy farmers who supply Asda with liquid milk.

Earlier today, Asda said it would up the premium it pays farmers – on top of the price paid by processor Arla – from 1ppl to 3ppl.

The move followed angry calls from dairy farmers in response to Arla’s 2ppl milk price cut a fortnight ago.

But Farmers For Action slammed the increase. “Farmers are totally outraged and reject completely Asda’s punative price increase to their dedicated farmers,” it said in a statement.

The price increase only brought farmers’ milk price to 27.5ppl, it argued, while farmers’ costs of production were currently in excess of 30ppl. The increase served to highlight the additional margin available for farmers in the supply chain.

“Our message to Asda is loud and clear,” the group said. “When you reach cost of production price then we can start talking.”

Farmers For Action – alongside the NFU, NFU Cmyru, NFU Scotland and the Tenant Farmers Association – has called for a reversal of the milk price cuts made by the nation’s milk processors since April.