Asda and Arla partnership delivers £7m for dairy farmers

Asda and Arla have marked ten years of their Farmers Milk arrangement, which has produced more than £7 million in extra returns for farmers supplying Arla Foods. The programme has represented the sale of over 28 million bottles during the decade, creating an additional income stream for members of the cooperative.

Under the scheme, customers pay a premium for the milk and 25p from every bottle goes to Arla’s farmer owners. The range was introduced in 2016, when dairy producers were facing pressure on their incomes. Asda was among the first large supermarkets to give shoppers a direct way to support farmers through routine purchases.

At its introduction, a four-pint bottle cost £1.20, compared with 95p for Asda’s standard own-label milk. The product remains exclusive to Asda. Its current four-pint whole and semi-skimmed varieties are listed at £1.90.

Rebecca Stanton, Asda’s chilled business unit director, said customer backing had enabled the arrangement to return more than £7 million to Arla farmers. She described the result as evidence of the impact of long-term partnerships on British dairy farming.

The anniversary coincides with a rise in UK farmgate milk prices after a period of volatility. Data from the Agriculture and Horticulture Development Board show that the average price reached 36.89p per litre in August, 4% higher than in July.

Jonathan Dixon, Arla Foods UK’s senior vice-president of sales, said the initiative had shown the value of cooperation among farmers, retailers and consumers. He said that, as a farmer-owned cooperative, Arla placed creating value for its farmer owners at the centre of its activities.

Asda is also continuing a broader store refresh. This includes expanding the return of Daisy the Cow, a mascot first associated with the retailer in the 1990s and brought back earlier in 2026 as part of changes to the in-store shopping experience.