Farmers protest over price of milk at opening of £27m Asda store

Farmers have protested about the price of milk at the opening of a £27m Asda store in Inverness.

Protesters used a milk bath to draw attention to their cause at the new superstore on Monday.

Plans for the supermarket and petrol station at Slackbuie in Inverness were unveiled six years ago.

Following planning and legal wrangles, construction of the £27m store, the first Asda in the UK to have a grass roof, was completed earlier this year.

A spokesman for the National Farming Union Scotland said Asda was one of the retailers farmers were unhappy with.

MP for Inverness, Nairn, Badenoch and Strathspey Danny Alexander was also at the store speaking to dairy farmers.

Environment secretary Richard Lochhead said that legislation should be considered to prevent dairy farmers being abused by powerful retailers and producers.

Dairy farmers complain that the money they are paid for milk does not cover their production costs, a situation Mr Lochhead described as "unsustainable".

He is meeting environment ministers from the UK administrations at The Royal Welsh Agricultural Society Show in Powys on Monday to devise a code of practice to rebalance the relationship between farmers, producers and retailers.

If the code is unsuccessful he has said that legislation should be considered to protect farmers from large retailers and producers who "abuse" their power in the market.

The Scottish Government has already intervened to discourage supermarkets from using alcohol as a loss leader by outlawing multi-purchase deals, and are driving through legislation for a minimum unit price on alcohol.

Ministers also recently introduced a public health levy on large retailers of alcohol and tobacco, commonly known as a "Tesco tax" for its overwhelming impact on large supermarkets.

Asda said the new supermarket at Inverness had created 400 new jobs and that the grass roof was not only an eco-friendly measure but would improve the view for people in houses on a hill overlooking the site.

The chain unveiled the site back in May 2006 and consent for the development was given in January 2011.

A spokesman for Asda said: "We take our responsibilities to farmers and our customers seriously and understand the challenges facing both sides, which is why we are investing to keep money at the two most important ends of the supply chain in farmers’ and customers’ pockets.

"We have listened closely to the concerns of our farmers and understand the financial pressures they are facing. That is why on Tuesday last week we committed to increasing the premium paid to our 272 dedicated dairy farmers from 1ppl to 3ppl from Aug 1 to offset the farmgate cut announced by Arla. This move is worth around £30,000 per annum to the average Asda Dairylink farmer.

"We’re also delighted to see so many new customers take the time to visit our new Asda store in Inverness on Monday and hear how much it means to them to have an Asda store in their local community."

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