SUPERMARKET giant Asda announced this week that it will be asking its dairy processors to pay dairy farmers an extra two-pence for each litre of milk.

The supermarket chain says it has asked its suppliers to see that the increase goes straight into farmers pockets.

it also said that the firm has no plans to increase the price at which it sells its milk on the shop floor.

Last week major dairy companies Express and Dairycrest announced a one-pence per litre rise but Asda says it will pay two pence more without increasing prices on the shop floor because of improvements in market conditions Asda's suppliers, including Robert Wiseman Dairies and Arla Foods, are expected to pay the increase from October 1.

Matt Robinson, from Holmescales farm near Endmoor, is Cumbria NFU dairy spokesman.

He welcomed news of the increases and said he hoped other buyers would follow suit, but warned that it was only a start.

"The increase is welcome of course, but, with even the most efficient dairy farmers getting paid one pence a litre below the cost of production, it will still leave man good dairy farmers receiving less than their costs.

"If we get two or three pence a litre more, the danger is that people will think the pressure is off.

It may be a start, but dairy farmers still need to reform and reorganise themselves into strong farmer owned co-ops."

Jane Childsworth, marketing manager for Zenith co-op, one of the major milk buyers in the region, describe the rise as "a very positive move".

She said Zenith were engaged in talks with their customers about the price it will be paying its producers in October, and said the announcement of the rate would probably be early that month, made a little later than is usual.