Wednesday 18th October, 2006
ASDA CELEBRATES TWO YEARS OF DEDICATION TO BRITISH DAIRY FARMERS
Nearly £6m Extra Paid To ASDA Farmer Partners Since Scheme Was Launched
ASDA today (Wednesday, 18 October 2006) celebrated the second anniversary of its direct relationship with British dairy farmers. The supermarket confirmed it has paid out nearly £6m extra to producers as a result of the deal, which entitles farmers to a 1p per litre premium above and beyond the Arla base price*.
ASDA also took the opportunity to welcome Sainsbury's decision this week to follow its lead and start working directly with dairy farmers rather than sourcing milk from an anonymous pool of producers.
ASDA has consistently challenged other retailers to follow its lead and adopt the NFU's Vision for the Dairy Industry. Two years ago the supermarket appointed Arla to become its sole supplier of fresh, liquid milk. As a result a dedicated group of 550 producers, the ASDA Farmer Partners, began supplying the retailer with all of its fresh, own label milk for ASDA stores in Great Britain.
All of the participating farms are located close to the dairies that process their milk - this ensures ASDA’s milk only comes from cattle that graze on nearby farms. ASDA estimates that the switch to using dedicated farmers has saved around five million road miles a year.
Chris Brown, head of ethical and sustainable sourcing said: "We're completely open about what we pay our farmers, while most of our competitors still prefer to keep their prices under lock and key. By having a group of dedicated farmers who supply all our British milk, we're able to pay them more, charge our customers less, and reduce the distances our milk travels around the country.
"We welcome Sainsbury's announcement to follow our lead, and hope other supermarkets will now do likewise."
To celebrate the second birthday of the partnership ASDA is offering its customers the chance to win a 1.6 Mini Cooper in a unique black and white Friesian cow design worth £15,500 (the same amount of extra money each ASDA dairy farmer earns every two years through the premium it pays for its milk).
The winner of the car will also receive £1,000 towards the first year’s car insurance, and there are 200 runners-up prizes of 100 Country Cow festival cow tents, worth £50 each and 100 Country Cow kids’ sleeping bags worth £20. To enter simply log on to www.asda.com and complete an online entry form, closing date is midnight on 13th November 2006.
-ends-
Notes for Editors
*ASDA Farmer Partners receive 1p per litre more than other farmers within the Arla Foods Milk Partnership. This is significantly more than farmers receive from other major processors and co-ops who supply other major supermarkets (http://www.mdcdatum.org.uk).
ASDA dairy farmers are currently paid 18.93p per litre or 19.19p for fresh liquid milk (figures differ depending on milk production profile i.e. which time of year they tend to produce their milk). This compares to First Milk's standard price of 16.46ppl, Milk Link's price of 16.28ppl, and Dairy Farmers of Britain's price of 16.55ppl (source: Milk Development Council 18th October 2006).
In the last year ASDA has paid each of its farmers the equivalent of a £8000 bonus in addition to the Arla standard milk price.
For further info on the NFU's Vision for the dairy industry visit: http://www.nfuonline.com/x834.xml
ASDA sells approximately 450 million litres of fresh British milk each year Background to the ASDA Farmer PartnersIn January 2004 all of ASDA's existing milk suppliers, Arla, Dairy Crest and Robert Wiseman, together with a number of interested dairy cooperatives, were asked to submit proposals to the supermarket based on three criteria: open relationships, dedicated/segregated processing, and identifiable farmers.
In May 2004 ASDA appointed Arla to become its sole supplier of fresh, liquid milk. As part of the new arrangement, all ASDA's raw milk in Great Britain is supplied by ASDA Farmer Partners, a dedicated group of c550 producers within Arla Foods Milk Partnership. Arla's milk pool is one of the largest in Britain with farmers stretching from the Southwest of England to the Northeast of Scotland.
Background to ASDA
ASDA can trace its own roots back to a group of Yorkshire farmers who formed Hindell's Dairies in the 1920s, processing and retailing milk and meat to a growing customer base. The company was extremely successful and continued to expand and diversify, acquiring more processing dairies, abattoirs, bakeries, shops, four managed farms and 22 rented farms. The company floated in 1949 as Associated Dairies and Farm Stores Ltd. Associated Dairies merged with Queen's Supermarkets to create ASDA Stores Ltd. in 1965.
Competition details
Here’s your chance to win a fabulous 1.6 Mini Cooper in a unique black and white Friesian cow design. Worth £15,500, you could be driving round in this special-edition model. Plus we’ll deliver the prize to a mainland UK address and give the winner £1,000 towards the first year’s car insurance. There are also 200 runners-up prizes of 100 Country Cow festival cow tents, worth £50 each and 100 Country Cow kids’ sleeping bags worth £20.
Terms and conditions
The prize draw is open to all UK residents excluding employees of Arla Foods and ASDA Stores Ltd, their immediate families or anyone professionally connected with the draw. The winner of the Mini Cooper must be aged 18 or over to claim and take delivery. No purchase necessary. One entry per person. No bulk or third-party entries will be accepted. The one main Mini Cooper prize includes a year’s road tax, delivery (within mainland UK) and £1,000 towards a year’s car insurance (group 8 insurance). The car will be delivered 10 to 12 weeks from date of order.
Runners up prizes are: 100 x Country Cow Festival Cow Tents and 100 x Country Cow Kids Sleeping Bags. There are 201 prizes in total. The winners will be drawn under independent supervision and notified in writing within 28 days of the closing date. The promoter’s decision is deemed final and no correspondence will be entered into. No responsibility can be accepted for entries which fail to arrive or which are delayed or damaged in any way. Proof of posting is not accepted as proof of delivery. No cash or other alternative prizes are available. A list of winners names and counties can be obtained by sending an sae marked “Winners” to: Milk is Magic “Moo MINI” Prize Draw, MKM, Nelson House, Park Road, Timperley, Cheshire WA14 5BZ. The winners may be requested to take part in any publicity resulting from this draw. Entry to the draw signifies acceptance of these terms and conditions. The promoter reserves the right to hold or cancel a prize in the event of noncompliance with these terms and conditions. Please retain a copy of these terms and conditions for your information. Promoter: ASDA Stores Ltd, ASDA House, Leeds LS11 5AD.
