RETAIL giant Asda’s decision to pay 28 pence per litre for fresh milk is unlikely to directly benefit struggling Oxfordshire dairy farmers, according to a leading local industry figure.

David Christensen, a dairy farmer from Kingston Bagpuize who is also a member of the board of representatives of dairy co-operative Arla Foods, said of Asda’s new price, four pence higher than the average for suppliers: “That’s an encouraging move that should be welcomed.”

However, Mr Christensen said Arla spread its revenues across all member farmers and so Asda’s new price was unlikely to directly benefit Oxfordshire farmers.

Arla currently pays its UK dairy farmers about 23p per litre.

Asda has committed to pay Arla the new price for the foreseeable future.

This compares to the average price of 24p per litre that dairy farmers were getting for their milk earlier this summer.

Milk prices paid to UK farmers fell by 24 per cent in the year to June and are well below the average cost of production of milk – 30-32p a litre.

The National Farmers Union said that it expected Arla, a global dairy co-operative owned by 13,500 dairy farmers, about 3,000 of whom are in the UK, to pass Asda’s price on to the co-op’s British farmer suppliers.

Mr Christensen said it was “impossible to say” whether more Oxfordshire farmers would leave the industry due to falling milk prices.

There are currently 42 dairy farmers in Oxfordshire.

The figure is down from 43 in 2014 and 75 a decade ago.