Retailer to pay farmers 28p per litre for milk

Marks & Spencer announced today that from this week it will pay its dairy farmers around 28p per litre of milk - an increase of approx 4p per litre.  The move reflects the current rise in milk prices globally and will be welcomed by dairy farmers in the UK who are facing increased productions costs due to rising feed prices.

Marks & Spencer was the first retailer to launch a premium price contract for dairy farmers in 2005, thereby removing the uncertainty of the milk industry's price fluctuations so its farmers have greater security.  Known as the M&S Milk Pledge, the contract is calculated transparently on a formula agreed with farmers which is based on objective indices covering input costs and the movement of the total market.  The price paid for milk is usually reviewed every six months, however, given the unprecedented rise in costs in the milk industry, Marks & Spencer has chosen to review its prices just one month after the last increase in August 2007.

Commenting on the price increase Joann Simon, milk buyer at Marks & Spencer said:  "We have made an early increase to our milk price to reflect market drivers that are currently affecting milk prices across the dairy industry. We value our long standing relationships with our dairy farmers and wanted to all we could to give them as much financial assistance as possible during this period of economic instability.

Marks & Spencer is also increasing the retail price of milk in store from 38p per pint to 42p per pint.  This follows a general increase in retail prices for milk across the market.

For more information please contact
Kate Gentle, M&S press office 020 8718 8741

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