British supermarkets give ground in milk price wars

British supermarket Morrisons and German trader Aldi responded yesterday to pressure from financially strapped dairy farmers by raising the price they pay milk suppliers.

UK farmers have said they face financial ruin, with falls in the price of milk forcing many out of work and spurring others to blockade distribution centres and walk cows through supermarkets.

The dairy industry has seen a 25% drop in the amount farmers are paid for milk, caused by a decline in demand from China and Russia and exacerbated by a grocery price war in Britain.