Asda Cuts Nearly 200 Dairy Farmers From Supply Chain

Post by Sharat | March 26, 2010 | Groceries, Shopping News | Comment

UK retailer Asda has cut as many as 200 dairy farmers as it seeks to cull a portion of its supply chain due to oversupply.

During an interview on the BBC’s Radio 4, an Asda spokesperson said the company made the decision to reduce the number of dedicated farmers it employs by nearly half, from 500 to 300, and did so simply because the number of farmers it used were producing more milk than it needed,

The spokesperson went on to add that the reduction in dairy farmers would mean the remaining farmers on its books would have further opportunities.

However those farmers cut by the retail chain would see their incomes fall by thousands of pounds a year.

David Brown, a dairy farmer based near Harrogate in North Yorkshire, said: “We got a letter saying Asda have been looking at the dedicated farmer pool and they have reduced it and unfortunately we will no longer be supplying milk to Asda .”

“It means I am going to lose somewhere in the region of £5,000 a year, which basically means there will be no future investment at this farm – that will be it.”

Please Note - All Prices Quoted Are Correct at Time of Posting

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