Morrisons Carrier Bag Charge expected to raise an estimated £5m windfall for good causes

Bradford, England, 2015-10-1 — /EPR Retail News/ — The Morrisons Foundation predicts an increase in the number of grants awarded following the introduction of the Single Use Carrier Bag charge on Monday 5th October. The charge in Morrisons stores is expected to raise an estimated £5m windfall for good causes when it is introduced next week.

The carrier bag legislation requires the retailer to charge customers 5p for every single use carrier bag used during a shop. Morrisons has committed to donating income from the charge to its charitable foundation which will offer grants to local charities across the country.

In the run-up to the introduction of the charge, Morrisons has helped customers prepare by:

  • * Displaying information in stores to remind customers.
  • * Checkout staff have also been telling customers about the charge.
  • * Introducing measures to encourage customers to switch from single use carrier bags to reusable bags including reducing the price of its Bags for Life from 12p to 10p.
  • * Launching a new range of reusable bags including classic woven bags, durable cotton bags, a convenient packable bag and insulated options ideal for chilled or frozen products.

In Scotland and Wales, where a similar charge is already in force, Morrisons has seen around an 80% reduction in the use of single use carrier bags.

Morrisons Group Corporate Services Director, Martyn Jones said: “This is a big change for customers and we are working hard to make our shoppers aware of the charge and provide them with a choice of reusable bags. However, the charge will be a boost for local charities across the country and help them to deliver projects that will make a real difference in their communities.”

The Morrisons Foundation was established earlier this year to provide grants to both local and national charities carrying out projects that improve people’s lives. To date the Foundation has awarded over 100 grants totalling around £650,000. In addition, some proceeds generated from the single use carrier bag charge will be donated to Morrisons curent charity partner, Sue Ryder.

Funds raised from Morrisons online deliveries will support a recycling initiative which will reprocess used online delivery bags into new carriers.

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Morrisons extended its range of measures to support farmers supplying the cheese industry

Bradford, England, 2015-9-7 — /EPR Retail News/ — Morrisons previously announced a number of steps to directly help dairy farmers including:

  • Creating a new brand of milk, Morrisons Milk for Farmers, where 10 pence per litre goes back to Arla farmers.
  • Creating a Milk for Farmers cheddar cheese priced at a retail premium of 34 pence-a-pack above our standard Morrisons cheddar price to deliver the equivalent of 10p-a-litre back to farmers who supply the milk.
  • Increasing the guaranteed minimum price offered to processors, for the liquid milk element of processed fresh milk, through the winter.

This week Morrisons launched the new Lake District brand of British cheese, which will carry the Red Tractor logo, and its ‘Milk for Farmers ‘ fresh milk and cheddar cheese range are expected in stores in early October.

Today, Morrisons confirmed to the NFU and FFA that it will introduce new measures specifically to support dairy farmers working within the cheese industry.

  • On Medium Cheddar Morrisons will pay a 9.5 per pence kg of cheese (equivalent to 1ppl) supplement over the winter period on this volume, to its processors, starting next week.
  • On all of Morrisons Mild Cheddar (standard & Savers brands) Morrisons will pay a 28.5 per pence kg (equivalent to 3ppl) supplement over the winter period to its processors on this volume also starting next week.

All additional funds generated will be paid back to farmers through Morrisons suppliers starting in October.

In addition, over the winter period Morrisons will move from 95% of cheddar being British to 99%* to further support the industry.

Morrisons Corporate Services Director Martyn Jones said: “Our relationship with the farming community is very important to us and, in support of dairy farmers we are committed to introducing a number of measures including this additional winter supplement on cheese as well as the launch of the new ‘Milk for Farmers’ range. Our shift to 99% British cheese in all of our stores further demonstrates our commitment to the British dairy farming industry and we urge all other retailers to show the same level of support for this great British product.”

“With this significant investment on cheese, following our guaranteed minimum farm gate price on milk announced last week, we believe Morrisons can work with both dairy farmers and dairy processors to create a long term sustainable business for all parties.”

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Morrisons to launch new milk brand where ten pence-per-litre goes directly to dairy farmers

Bradford, England, 2015-8-11— /EPR Retail News/ — Morrisons is to launch a new milk brand where ten pence-per-litre of the retail price will go directly to dairy farmers.

The new brand “Morrisons Milk for Farmers” will go into all stores in the autumn and is aimed at shoppers who want to directly support dairy farmers. It will sit alongside Morrisons standard-priced own brand milk in the dairy aisle.

Morrisons’ Corporate Services Director Martyn Jones said: “We recognise that the current market for liquid milk is impacting on hardworking dairy farmers and their families. We want to reassure the industry that the retail price we charge for Morrisons milk reflects the highly competitive retail market. It is not linked to the price we pay our milk suppliers.

“We want to offer practical help by launching a range of 4-pint milk at a retail premium of 10p per litre, all of which will be passed back directly to dairy farmers. We will stock this product in all our stores, offering our customers the choice to support dairy farmers directly.”

Morrisons is also today giving more details of how it pays for milk from its majority supplier Arla, which buys milk from farmers.

Martyn Jones said: “We also want to clarify that our current three year contract with Arla, who supply the majority of our milk, uses a cost model that automatically adjusts the price that we pay for milk, based on a combination of the independently set farmgate price and other commodities such as diesel and plastics that influence the cost of milk.

“We can confirm that we have asked our milk suppliers not to pass on further decreases in the current farmgate price to us, but to share any benefit with the dairy farmer instead.”

Full Statement from Morrisons

“We recognise that the current market for liquid milk is impacting on hardworking dairy farmers and their families. We want to help. Firstly, we have asked our milk suppliers not to pass on further decreases in the current farmgate price to us, but to share any benefit with the dairy farmer instead. We want to offer practical help by being the first supermarket to launch a range of 4-pint milk at a premium of 10p per litre, all of which will be passed back directly to Arla farmers. We will stock this product in all our stores, offering our customers the choice to support dairy farmers directly. We also want to clarify that our current three year contract with Arla, who supply the majority of our milk, uses a cost model that automatically adjusts the price that we pay for milk, based on a combination of the independently set farmgate price and other commodities such as diesel and plastics that influence the cost of milk.”

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Morrisons to launch new milk brand where ten pence-per-litre goes directly to dairy farmers

Morrisons to launch new milk brand where ten pence-per-litre goes directly to dairy farmers

Morrisons signs new three-year contract for liquid milk with Arla Foods and Dairy Crest

Bradford, England, 2015-1-21 — /EPR Retail News/ — Morrisons already has an existing relationship with the farmer-owned cooperative, Arla Foods, for liquid milk but the new agreement guarantees increased volumes.

Arla has just opened what is understood to be the most efficient milk processing plant in the world in Aylesbury, where the retailer’s fresh milk is processed and Morrisons believes that this investment in the British dairy industry will lead to stronger returns for Arla farmers in the long term.

Morrisons also has an existing relationship with Dairy Crest and although it will be reducing volumes for liquid milk, the processor will continue to supply Morrisons with high volumes of other dairy products including cheese, butter and soft spreads.

The agreements will also bring closer Morrisons’ ambition to introduce a scheme that will help farmers manage the volatility of their milk price. This will involve working with a group of farmers to help them hedge prices.

Casper Meijer, Morrisons Group Trading Director said “Following the end of our previous five year contract, we have chosen to continue the relationships with our existing dairy companies ensuring no further volatility is brought to the dairy industry. It’s important that we can assure customers of a long term supply of liquid milk and our existing relationships with both processors have already shown us they can deliver that.”

Martyn Jones, Morrisons Group Corporate Services Director said “Arla is owned by farmers which means that members will not only receive more business from Morrisons but should receive a benefit from their cooperative. Also, by working with a second processor, Dairy Crest, we will be reaching a greater number of farmers than we would with a single dairy company.”

As part of the contract negotiations Morrisons held discussions with all the major dairy companies including Graham’s of Scotland. As a result of these discussions Graham’s will now begin to supply their brand of milk and butter to Morrisons stores in Scotland.

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