It's a bit confusing, but I think that some supermarkets (waitrose and the co-op come to mind, but could be wrong) already pay their suppliers at a higher rate, but don't pass on this cost increase to the customer.
Morrisons are apparently now agreeing to pay farmers a higher price, but will be passing this on, albeit giving customers an option to buy the higher priced milk and know that the farmers are getting a better price, or of course to continue buying the lower priced stuff.
The milk will be exactly the same, it is only the price that will be different.
Well put Roses, and I know that I should have clicked the link and read the piece, but the Hudl is on to charge and the upstairs computer tends to throw a hissy fit and crash if you ask too much of it at the moment!
Why don't Morrisons just do what the others do, pay more to farmers and take a drop on their cut?