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    courtesy of the guardian.


    Dairy farmers are telling consumers not to buy milk at Morrisons, Aldi, Lidl or Londis - and think twice about Asda and the Co-operative - as the battle over prices spills on to the high street.

    The row centres on the "farm gate" price paid to Britain's 14,500 dairy farmers, most of whom will, from 1 August, receive just 25p a litre for the milk they produce compared with around 30p before. The price cut will force many into bankruptcy, warns the Royal Association of British Dairy Farmers, which along with the National Farmers Union and Farmers For Action say that 30p a litre is the minimum price that producers can survive on.

    The price cut has been pushed through by the major processors, such as Dairy Crest, which pasteurise and bottle much of the milk produced on UK farms. But RABDF chief executive Nick Errington blames the supermarket groups for relentlessly squeezing both processors and farmers.

    "In 1996 the retailers were making a margin of about 2.3p a litre, but today it stands at around 15p a litre, and has been as high as 26p a litre," he says. "The margin the retailers are making is just too high and they do not deserve it. The processor has to do all the pasteurisation, bottling and delivery to the supermarkets. All they do is put it on the shelves and collect the money. They have become far too powerful."

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